Yes, sometimes the real physics does look a bit less exciting than the movies. Same goes for small scale explosions as well, it seems... or perhaps physics guys just claim that it is so, because we suck at making nice graphics ;-)
Real physics look good enough, better even. I never understood why Hollywood explosions are those yellow gas filled blobs when real and proper ones are so very impressive. The same goes for these collisions - cinematic clips typically tend to look animated (which they are) and spectacular in all the wrong places, but this looks a lot more natural and, I would say, dramatic. I mean, it is a planet breaking up, what more do you want?
Give me a scientific simulation with at most a thin layer of artistic interpretation and I am a happy camper. I am curious to see what you guys can come up with!
As to hardware. Personally running win 8.1 on an i7 5820K 3.3GHz and a radeon hd 7900. I am sure some of you have much better systems than that. Others develop/test on slower systems like laptops. Essentially the program should run ok'ish on most non antique hardware, so it would be counter productive if we all had the latest and greatest.
I would pretty much call that the latest and the greatest. CPU wise this is pretty much the pinnacle of consumer grade kit at the moment and the GPU has been surpassed, but can hardly be called outdated or slow. Colour me jelly, I could use those 12 threads for renders and all kinds of assorted mischief. Need? No. Want? For sure.
I agree with not needing to develop on the fastest hardware though, it makes for lazy programming, har.