Im sorry but from the odd shot of GT5 Forza 3 (whoops) and even from the stills pulled from videos that seems to have nothing to do with reality.

Wait...the first pic is from Forza 3?

If so...ZOMG!

looks good to me. the difference is you took a picture of the sd video. I have gotten to play it and it does look as good as the promo shot.

That's a screenshot taken from the low quality video (even if it says HD it's still bad quality) but still you can see the graphics are much worse than we've seen earlier.

Looks like Forza 2.

No it is HD, still It is a little blury.

First one is pretty much SD (800x450)

Second one is HD, though (1280x720)

I mean there are two versions of video on GT SD and HD, and it is from second one.

It looks good enough I think.
The rewind thing is weird, but I can see how one can use that make it much easier to learn a track.

Good but no where near the screen shots.