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How people drive the cars in the game isn't based on damage or no damage.

Even if there was realistic damage you don't think people would just bump other cars just for the heck of it because damage is so cool?

If people who plays the game don't have the skill to control a car in a (semi-)driving sim. They will hit you no matter there's damage or not.

If they race like how it should be, they will avoid to hit you no matter damage or not.

I know so many people claiming GT games are hard because the cars are hard to control. Most of them didn't even think that you need to brake before a turn. (experience from NFS, burnout, etc)  With those people playing, damage or not, they will still hit you.

With realistic damage, not only his car will be totalled, so would yours, and you would be even more frustrated because some asshat hit you and you are out of the race.