Yes, we know that LittleBigPlanet will let players slight stuff on fire and BURN THINGS. But that's just fire. What about other elements? Or the weather? According to Media Molecule's Mark Healey:
You can set fire to pretty much anything, you can also make things ‘electrified', or turn them to gas, which is very cool... By water, I assume you mean ‘real water' that acts like real water does! This isn't in the initial release, but we have some cool ideas for how to integrate it into a possible future DLC — of course, it will have a slight LBP twist to it... There is fog that you can tweak, and you could pretty easily fake a thunderstorm with the right sound effect objects and some ‘emitted' rain drops or something.
Electrified? Gas? Possible water DLC? Tweakable fog?! Fake thunderstorms?! Woah. Exclusive Interview with LittleBigPlanet Co-Creator Mark Healey [LBP Forums]