Particle spread physics? Um, those things aren't distributed acoording to physics, they're spread either completely random or with different formulas for different particle types (e.g. core, ring, sparks, dirt). Have you seen Doom 3's particle editor? There's zero physics in there, just a start and end speed vector plus a few other settings (size, rotation, display type, etc).
yes the formulas for having mario move on a frictionless surface are simple and they increase in complexity as the friction changes
No, they don't get more complex, they simply multiply the speed with a larger constant.
when i said that mario 64 is complex i was really comparing it to previous incarnations of mario on the snes and nes.
Except for the third dimension (which behaves exactly like the previous x direction) and the "sliding" state I don't see a difference there. Oh, yeah, he can grab onto a ledge but that's an if-then condition, not dynamic interaction (IF close enough to edge THEN go into state "hanging"). Physics would be if it checked for collision between his hand and the world and stopped him and appied the proper forces when he climbs up instead of replaying an animation and changing his position by a predefined value.
If you define a vector that is added to the object position each frame as physics that's your thing, to me that's still basic game logic. Physics would mean that if you kicked the goomba he'd roll down the hill or something like that.