Kinetic energy is not always conserved in two-dimensional collisions, as it depends on whether the collision is elastic or inelastic. In elastic collisions, such as those between metal balls or billiard balls, kinetic energy is conserved, while inelastic collisions result in some kinetic energy being transformed into other forms of energy. Perfectly elastic collisions are theoretical, as real-world materials always exhibit some inelasticity. The degree of elasticity in a collision is influenced by the rigidity of the materials involved. Understanding these principles is crucial for analyzing collision dynamics in physics.