I have always been interested in soft-body physics, but this is one of those algorithms which promises to stand out of the crowd. While soft body simulations have been under considerable research, their applications to the games in general have been limited. That is due to the fact that such simulations are complex and time consuming. Simulating a lot of soft bodies at a time can be punishing to the frame rate. Th FastLSM algorithm appears to be pretty impressive in term of speed and accuracy even for a fair number of objects in the scene. However I am not so sure how it will scale to an arbitrarily complex world often encountered in a game.
I am particularly interested in soft body physics for simulation of liquids ever since I first saw soft body simulation (and that was a while back). I never got around to really “getting my hands dirty” with this stuff though. Maybe I should give it a try one of these days. I must say the authors have been extremely kind enough to give fully commented source code along with their paper. That will definitely help any aspiring candidates like me who want to implement such simulations.