I think a game with movie-realistic acid would be entirely frustrating and piss players off beyond belief. It's interesting to think from an architectural view how it could work using physics and an open world, but gameplay-wise players would be constantly dying, reloading, dying, reloading, arms burn off, reloading, head melts away, repeat, repeat.
Acid does need to hurt and be enough of a deterrent, but there has to be limits.