I'm surprised no one else has mentioned this, imo the game does feel a little more 'arcade' even with all the driving aids off. You can floor the GT3 in 1st from a stand still and it won't spin!?
You may want to read my impressions on the physics a few posts back. In general, plenty of people on several different boards have mentioned this - yes, the cars in the game are easier to control. But what happened, basically, is that from being harder than it should be through a weakness in the physics engine, the game now seems to have become easier than it should be through a weakness in the physics engine.
Other than that, I have some additional thoughts about the graphics. They're not about the LOD models - when che confirmed to us that the shots released were all from photo mode, that's all the information I needed. I think the LOD of the cars is still decent enough in-game. The problems lie elsewhere. As I wrote on Gaf:
When it comes to that, the most important differences I can see are in the lighting and reflections. Under bright circumstances where the car has real-time reflections calculated in, Forza 3's cars look quite good. Forza seems to use the 360's 10bit HDR mode I think though, as there's a limit to the color depth. Also, the lighting is not dynamic - no contrast change or other HDR effects. For instance, if you look around from your car you'll notice that the sky keeps the same intensity no matter how you look at it (from the shadows, cockpit, with more or less sky obscured by the environment, etc.). There are no tunnels in this game so it's not possible to see if they have this affect for tunnels, but if they do it's clear that this then would be basically hard-coded for the tunnel, as there is nothing dynamic going on there. Overall though it still looks quite decent.
As soon as they have an angle where there are no reflections however, or when the cars drive in the shadow, the Forza 3 cars really don't look great. I came home with my son yesterday and looked at my car and noticed how the reflections and lighting are really quite similar to when the car is in the sun - you still see a tonne of reflections and so on, even at low light conditions. But in Forza 3, the reflections on cars seem to basically disappear in the shadows. This ruins the illusion - the car's material no longer resembles its real-life counterpart, and it starts to look like some kind of matte plastic. It's strange, because I get the impression that this could be something that is relatively easy to fix - just make sure that there are always reflections visible. I wonder if maybe there's not enough resolution in the shading model for this in the graphics engine, or whether this is just a plain oversight?
Anyway, especially this latter issue is my biggest complaint about Forza 3. It's making significant steps forward. However, in terms of the internal consistency of the graphics, this is the biggest standout issue (cockpit view lighting is also a bit weak, but I'm grateful for the cockpit view nonetheless and it's less important).
Otherwise I feel that in the demo there's been a good balance between cars and environment and the overall impression of the graphics is pretty decent. To quote my lovely wife who has absolutely no clue about graphics, "the lighting isn't as good [as Gran Turismo], but the vegetation looks better" :lol
It would be nice to have some input on these thoughts from the graphics experts.