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The point is they all use different ways of computing procedurally deformable objects. "Softbody physics" is a broad term that applies to varying degrees of softbody implementations - yes, even "hard body" physics. If it deforms dynamically (with no premade “damage states” ala Halo's Warthog), then it's softbody physics.
Each type of physics implementations have their own positives and negatives. While yes, BeamNG's is superior for accuracy (as it simulates more pointmasses), it isn't optimised for having 23 simultaneous deformable vehicles in an interactive and destructible environment, and that Wreckfest's focus isn't so much on the accuracy but the visceral fun in what could be called a “simcade” experience.
I'm saying this not because I'm a fanboy of Wreckfest, but because I studied game design and I don't like seeing terminology being used incorrectly.