I believe the way to accomplish the need for this is temperature based object models. Essentially everything in the sim would be assigned a temperature value. This would be rather simple for troops and objects that don't have engines/moving parts. But probably more difficult for objects with turbines, engines, tracks, tires, etc, as well as explosions tracers etc.
That being said, I bet its readily doable by DCS. It would definitely make target identification much easier since you would have much less ground clutter, which would be far more realistic.
As a side note, in battlefield 3 everything is assigned a temperature, although its a rather simple model.
It would be awesome to see the rocket plume of a SAM fire off from the ground.