Considering that you would be hard pressed to get a group of meterologists to agree on what actually is happening insode a tornado (other than it is spinning really fast)...no, it could not simulate a tornado.

If you just want wind...grab the formula for a helix and send particles spinning with a bit of noise applied. When they impact with an object - apply force in that general direction.

If you are looking to simulate the destructive nature of tornadoes...I would say look else where. Simulating real world damage is not something that you will be able to do under normal circumstances (by normal I mean using normal hardware and normal data sets which are commonly available).

The work which I was doing dealt with similiar problems, and using clusters of 10 of the fastest computers you can get your hands on, combined with structural data gleaned over months and months of field tests we could give you impact information that was mostly accurate...and that only took about 15 minutes for 1 minute worth of output data to be calculated (roughly .07 FPS...not something that is playable by any means).

Fake it. That is the key to simulations in real time.