This game has excellent damage simulation, except when falling comes into the equation. So far, I have seen many aspects of the game improved from it's ArmA counterpart, but like ArmA, this game cannot handle any kind of falling.
I've had experiences wherein, I walk down a flight of stairs and fly down to the bottom and break a leg. Not too much to handle, except when this happens I'm always at the top of a large building ;( Falling from guard towers often results in death from me(About a 4m or so fall, bugger all really.)