Progress on the rusted boat in combination with painted style. Still quite a ways to go in terms of blending between the not rusted boat and getting the right amount of material definition with the painted style.
Hand-painted tiling rusted metal texture (left). On top of this, I've started to overlay hand-painted model specific details.
Some thumbnails illustrating the key points in the sequence. The boat rusts over as you approach it. The sand closes in on the ocean in waves, leaving the boat in a puddle. The sky becomes increasingly darker and overcast. Finally the boat has deteriorated to skeleton bones sticking out of the sand.
Concept art for the top of the mountain, the candle that melts into amber, and the amber that solidifies into rock.