Without having a good understanding of the underlying engine/code that governs Nexuiz, as a programmer I'm a big advocate of creative kludges for limited purposes. It may be that the Quake engine would allow for vehicle "physics" using the underlying gameplay mechanisms. Limiting the scope of gameplay using vehicles should be faster (development/resource-wise) and easier than incorporating a dedicated physics library, and provide maybe a whole new level of gameplay at minimal cost.
I have a few questions though, hopefully helping to spawn some ideas about how this could be accomplished. If client/server checks were suspended for physics routines, could additional "hypothetical" next frame calculations be made per frame when in a vehicle (five samples @ 30 fps) to project the angle at which the model should be represented? If so, the average of the orientation vectors for the next five or so frames could provide a vector for the currently displayed orientation. That would take away the "binary" orientation and give some measure of smoothness to flying over hills.
That leads me to my next question: Is it possible, while only translating players' positions, to control the visual orientation of the player models? If so, then the previously-projected orientation vector could be applied to the visual representation of the player model to simulate smooth orientational changes due to terrain, etc. I recommend avoiding complex crash/damage calculations, even at first for landing up-side down.
Finally (as this is the heart of limited physics for vehicles) is it possible to give a greater preference to inertia in calculating the next position of a player than to left or right movement? When playing Nexuiz I know my model doesn't stop immediately, meaning there is code that controls inertia with respect to player position. The forward momentum would need to be made much stronger than left/right movements. There should be an inversely-proportional relationship between forward momentum/inertia and left/right movement strength. Pressing the down arrow would need to work against the player's inertia at a fixed rate, and left and right would need to be reversed when the player was moving backward (pressing down while the player's position is moving backward [has negative inertia/momentum]).
Of course, this is a creative kludge like I was saying, but if possible would be a hell of a mod were the proper vehicle models available. Guess my point is, if this is a Quake mod, it should really take its root code to its limits.
As an aside, does anyone know of any code like Mediawiki that allows easily posting and categorizing code, images, audio, and other binary data? I'm trying to build a wiki/database of FOSS game data.