mdl to gmax  (actually to dxf/3DS):  Possible, but only for (FS2000 and before) FS98 based model format.  You loose all texturing, any animations (most older models don't have all that detailed animations and detail anyway.

fsc to gmax (actually, to dxf):  THere is the CVA converter that can take an FSDS source file (or parts) and convert them to dxf.  Again, no animations/textures are converted, although the names/tags are mostly preserved.

gmax to fsc (again, via dxf): Convoluted via export as a Quake MD3 model, then conversion using a program to take the quake model to dxf, then (above) using the CVA converter to convert from dxf to fsc.

http://hem.passagen.se/henry.veppling/mdl/mdl.htm

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Nope.  The basic model format changed with FS2002, so the mentioned utilities don't work.

<philosophical rant>
From a designer's philosophical point of view, this topic is of concern.

If people can willy-nilly decompile and rebuild models from the MDL, then the possibility exists for serious abuse.

Presume I take the default 747 and rework it to turn it into the ABL-1 (Airborne Laser), and release it as "my" work.  Granted, other than the basic mesh, it will be "my" work since I would have to rebuild certain parts, add others, reanimate, retexture, remake the flight dynamics, etc, as well as - probably - the VC, but, the fact remains, that the basic mesh is copyrighted by Microsoft and I would be violating that copyright.

The argument can be made "I want it for my own use only." Which to a certain extent, is fine, since it (hopefully) won't see the (virtual) light of day outside your computer.  But again, we're talking about the unscrupulous folks out there.

This activity - and it doesn't need to be widespread, just enough that certain models get reworked and released without authorization - can quickly dry up releases from the freeware designers/groups, and either turn them off completely, or generate protective coded payware.

All this, of course, won't matter to the unscrupulous person, and freeware won't dry up completely.  But high quality freeware would be seriously affected if the possibility exists that it will be ripped off.

</philosophical rant>

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I can see your point of view. In my case, I would give full credit to Microsoft for their source files, and I would release the new aircraft as "a re-build of the default 747-400".

But like you say, there are some people who would abuse the privilege of being able to modify other people's meshes, and would claim their work for their own.....