Thank-you so much haegarr for your help, I think I understand things enough to have a beginnings of a architecture
In my fire simulation example I was imagining something like a potential field or cellular automata implementation. As you say its a balance between defining and using more general or more purpose-specific " sub-systems. "
The right granularity depends on the domain and experience.
One really nice thing is that it does neatly compartmentalize things and should make things more easily understandable and allow for easier revision.