Szoreny I gave some thought to this as well. It would be cool, but there are many cases where this would be undesirable. If they uses the kept models the corpses would certain impede looting of certain quest items, collision issues, and other game dynamics.
The effect can definitely be accomplished with almost no resource impact. You could add surface appended decals, but alone I don't think the look would be very convincing. You can also wrap it over a generic no physics low poly model to give it a little depth. Overall, yes it can be done. But if I were in their shoes fixing this wouldn't be tops on my list.
Also speaking of gamebyro, I wouldn't put anymore time into an engine with its maker currently in limbo.
