Am I correct?

[NeXFerret]

Am I correct in thinking that the only collision going on in this game is object-anchor?

[manored]

You mean like "the center of the a metal plate cannot colide with the center of other, however the border of one can colide with the center of other, and the border of one can colide with the border of another".

If yes, then I think you are right. That would explain why then a object is riped apart it vanishes instead of beind separated in 2 pieces.

[TSchultz]

If you have cloth though, it happens at the different segments of cloth rather than at the node.

[manored]

Maybe cloth is "made of nodes". That would explain why there is a visible minimum size.