This would be extremely useful for debugging the weaknesses of craft, as building ammo boxes and fuel tanks close to vital components can be a downfall for most craft. Could also be fun for players who want to see stuff explode.
I know you can destroy blocks in tools mode, but that requires you to have a direct line of sight towards that block (this requires other blocks to be destroyed too!), which is kind of painful considering you don't get access to block shrinking.

