I'm not exactly sure what you mean by "accurately modeled", but each animation in the game is based on a 3D model of a particular aircraft. Not some generic aircraft that has different skins. A Bf-109 will be recoginzably different than a Fw-190.
At the moment, we're looking at seven aircraft per nationality (US, UK, Germany, Japan) as the starting set, but that could change before final release. Each set will progress from early war to late war.
As far as the "damage model", the game is really more abstract than what you're thinking. Each aircraft has a number of ratings, one of which we call "Airframe" (the amount of damage it can take).
Remember, this is based on a card game, so each aircraft has a "front side" (undamaged) and a "flipped side" (damaged). When an aircraft takes a certain amount of damage they "flip" to their damaged side, and some of their statistics will be adversely affected. When they take additional damage, they are destroyed.
For example, the A6M2 (Zero) will flip to its damaged side when it takes 3 points of damage, and it will be destroyed with just 1 additional point of damage. The Spitfire V flips to its damaged side when it takes 3 points of damage as well, but can take an additional 3 points of damage before it is destroyed.
So, you won't see the level of detail where you get hit in the rudder and see bullet holes on that part of the aircraft, but it will be quite obvious when an aircraft has flipped to its damaged side.