Water is treated like the ground (treated Z and Y axis only even with height field displacement) so I think that depends on the vector computations as well as geometry axis displacement. Since trees cannot be treated like a 'single complete surface' (it has X,Y and Z 'depth' dimensions) since it has dimensions, the problem is much more complex with trees if it is desired to have this interactivity.
Don't get me wrong I want to see this too but I am practical too since I know what would BOG down the resources in the game. I would rather have all tehse extra polygons in the plane for detailed damage modeling rather than being used for trees.
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