I know it is often the topic of SIGGRAPH demos, but I always get distracted now when game or demo physics don't go the extra mile in calculating all of the factors, or having realistic drag (and things like that)...
I definitely understand where you're coming from but keep in mind that you likely have a much deeper understanding of physics than most game players (and likely most game devs).
Dwarf Fortress's algorithm actually supports global pressure propagation, albeit in an ad-hoc fashion:
http://www.gamasutra.com/view/feature/3549/interview_the_mak...
http://www.gamasutra.com/view/feature/3549/interview_the_mak...