I have read about that controversy time ago, somewhere, I can't recall.Old video and yes, some of it is live-action.
Last news I heard about the game is that it is 80% done and I also read this brief hands-on preview article
http://www.technobuffalo.com/2013/09/20/gran-turismo-6-hands-on-preview-no-trading-paint/
Aside from that, PD are creating a GT documentary called KAZ.