Currently mods have no way to cleanup runtime models when they are done using them, update existing runtime models, use a non-preexisting material for a runtime model, or create LODs for runtime models.
Runtime models are a great way to handle highly varying, but simple, geometry (hanging ropes, tarps, tents, etc) without the overhead of a full armature.
Additionally vertex positions for runtime models use half precision position packing, which can pretty easily cause unfortunate precision issues for larger meshes.