When something is destroyed, the plan is that there's a particle explosion of junk that hides the object being replaced by a wreck.
Ultimately we want wrecks and rubble piles to eventually be actual resources, so you can salvage or sell the scrap.
But right now they're only visuals.
There's also a broken door there, which is how it will look after doors get blown up.
As for the flickering, it adds a lot to the immersion, but we're not sure yet where or how we'll use it.