Nobody, so far as I've played, has remotely got close to realistic damage and I'm not expecting GT5 to (nor Forza 3 for that matter, as I see it's predictably been dragged into the thread).
Damage to date, IMO, has been either very arcade in nature or build around a reasonable approximation of damage to impact gameplay.
Whether in Burount, Forza or other driving games I've never once felt the damage was in any way in line with the concept of a simulation - the calculations, graphical requirements, etc. for realistic simulation would be huge, it seems to me, and beyond the scope of these titles.
Reading comments from GT5 developers that would seem to be behind much of their thinking - can damage be supported suitably for a simulation? I get the feeling the developers aren't convinced but feel they have to add it due to market demand - and I agree that with online play now you need something to stop exploiting impacts that have no cost.
In the end GT5 I believe will have to compromise, just as other titles have, and aim to have something that 'feels' right and does the job from gameplay point of view vs trying to get realistic damage in the game.
Try to be reasonable... its easier than you think...
