I forget the title but there was a Superman game on original Xbox that gave Metropolis a health bar, Not Superman.
Beating up bad guys, stopping disasters and completing missions helped the city survive. Getting hit meant a few seconds where you were inactive and the city might take more damage.
It was a pretty inspired idea honestly. I don’t think the game was excellent but good design choice.

Yeah I dont know how the army does it, but civilian aircraft would have to be “repaired” by being stripped and rebuilt or they’d never be considered flight ready. The distinction between destroyed and damaged is just the Air Force saving face.