The physics bricks work exactly like fake-dead bricks.
In your copy of Blockland, v10 do this. Go run a server, get a rocket launcher, shoot a wall made of bricks. The bricks fall down. After a while they will reappear.
In v11, it will work exactly like that, except that instead of the bricks falling through the floor/each other, they are physically simulated. The delay before they reappear is also longer. The events and everything are exactly the same.
There won't be any events for when a fakedead brick touches something, because the server doesn't know about what bricks do when they are fakedead, just the clients. (And they don't agree.) You won't die from a brick falling on you, it will just bounce off you in a realistic manner.
If you wanted to have e.g. a fatal rock slide, you could fake kill some bricks so they fall down and look cool, and also shoot an invisible projectile to kill the player. Or even schedule it so it directly kills the player who triggered it after a short delay.
Can you PUSH bricks that have fallen or are they decollided?
Yes, you can push them around, move them with explosions, other bricks move them, etc. The player and vehicles will move them but cannot stand on them or use them to climb cliffs or things like this.