Racing games reached their graphical peak last generation. GT3/GT4 looked great - the cars looked awesome.
Apart from having heaps of cars on the track, cranking up the detail in backgrounds, or modeling uber-fine detail (and interiors) - there just isn't much more you can do in a car game.
There is no reason why a well-made racing game for the Wii couldn't look awesome.
Gesta Non Verba
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