That would add some interesting things to the battle system, making gameplay totally different. I support the idea.
Graphics wise, I think it would really intersting to see, like you said, the battlefield damaged from an earthquake or a dig. Or maybe once somebody uses a water type attack like surf, there would be puddles of water around the battlefield.
Anyway, I wouldn't give this idea much importance for now, I would rather focus on the gameplay and leave the graphical ideas 'till later.
Best of luck!