IMHO, this is really a 3D art question. It's like playing with building blocks, except the building blocks can be animated in a couple different ways, and also you can seamlessly glue two blocks together, or cut a hole in one and fill it seamlessly with a different material. Plus there are blocks which are translucent or have invisible edges but visible middles.
What do I mean by different types of animation? Well, you can have a block that stays the same shape, but the texture on its surface is animated. (Or the light source(s) included in the block are animated, like a searchlight or a flame.) OR, you can have a block which cycles between two or more shapes. Some 3D systems also include a fog or plasma effect that allows an object to be filled with an irregular material that may be animated.
How would this work in a community? Probably like this:
- Player A creates a funnel shaped object. It's just a plain solid with a flat texture. It goes into the community shape library.
- Any player can paste one or more funnel shapes from the library, adjust their proportions, basic color, simple opacity, and orientation. Player B flips the funnel upside down and makes it translucent blue. They stick it to their faucet model, package the whole thing as "running water faucet" and put it in the community objects library.
- Player C creates an animated tiling water surface texture. Probably one version for directional water and one for still water. It goes into the community animated textures library.
- Player D creates an animated shape, "round ripple".
- Player E puts it all together: they apply the still water animated texture to a flat surface, then replace a circle of the water surface with the animated ripple shape. They center the faucet+water over the ripple, and apply the animated directional water texture to the outer surface of the water spout.
And so on, if you want to add steam and bubbles or w/e.