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Agreed, Forza 2 is the best racing game I've ever played. While the damage model isn't 100% realistic, it's realistic enough to keep you on your toes. I really like how things like drafting and (especially) turning play such a major role in the game. It's amazing how much those 2 aspects are neglected by most people online, there's an art form to it that in the course of 5 laps can mean 10+ seconds especially for the American RWD cars.

I can't wait to see what the next generation of racing sims are like, that's when it will start getting really, really interesting.