There are quite a few things from this rumor that are making me take its worth with a grain of salt.
1. As far as I know, Nintendo has never developed a new IP that tries to directly benefit from the competitions Pre-existing successful franchise . It's not in their nature to simply try to copy off of another franchises success and hope to be successful themselves. I mean we've still yet to seen a GTA, COD, or Halo type game from Nintendo even though all 3 of the series are wildy successful.
2. To my knowledge Nintendo has never developed a realistic simulation game before. The closest games i can think of are the Wave Race, 1080 Snowboarding, and Pilotwings series, and even those are more arcade style games.
3. If in fact Nintendo is developing a true racing sim to compete white GT and Forza, then there is no way this game can have anything in it that bends the suspension of believe ( i.e. Cameos from popular Nintendo Characters/Nintendo inspired tracks etc. ) The people who buy GT and Forza would definitely not tolerate any zany Nintendo antics in their the game. They want a game that is as realistic as possible.
4. To sum it up. If Nintendo is developing a true racing sim to try to directly compete with and try to sway over the Forza and GT fanbase. Then it needs to be devoid of that fantasy land Nintendo Magic, But if they take out that Fantasy Land Nintendo Magic, this game would simply just be another racing sim. Or to put in another way. The third wheel.
I'm an advocate for motion controls, Nintendo, and Kicking freaking Toad to the Moon!
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