I think the consequences of plate tectonics would be a nice thing, and at least some of it is intended at some time (earth quakes, volcano eruptions). However, it should also be noted that the upcoming Myth & Magic will open up the field for completely different kinds of world and "dwarves", so some kind of realistic simulation of the results of real world processes will only be applicable to a subset of the worlds. I'm not sure mountain range formation following somewhat realistic processes really add much to the game, though (it would be cool, but I don't think it would affect game play).
I can easily imagine a somewhat realistic world where the game takes place in the X:ths world, with each previous age of civilization being destroyed by gigantic lava flows (the Deccan traps, and the similar Siberian features), or super volcano eruptions (ash mostly, but smothering everything and very thick "near" the eruption), enormous tsunamis (like the one that flushed over what's now Scotland due to a land slide off the Norwegian continental shelf), and the (Atlantis) sudden submerge of the civilized world, and we can add the Deluge as well (the breach of the Bosporus, or the much earlier breach of the Atlantic into the Mediterranean basin), etc. Depending on the time scales, the denizens of previous ages may not have much in common with the played "dwarves" (a trilobite civ, a later one based on salamander type creatures, followed (with a large gap of nothing in between each) by reptilian and dinosaurian ones, leading to a mammalian one, for instance (with a corresponding weirdness to any surviving artifacts).
And I believe you're thinking of Orographic Precipitation for the rain shadow thingie.
One of the things that's being on the table to be used by the rewritten map framework is a more varied set of volcano types.