Yes, but its usually higher LOD models, no aliasing, extra motion blur - this looks like a completely different game to the trailers which look photo real.
The cars don't look bad, but the environments are shocking - even worse looking than Forza 2 (which is probably the worst looking racing sim this console generation)
http://cdn.cnetnetworks.fr/gamekult-com/images/photos/00/01/33/96/ME0001339620_2.jpg
Look at the tree sprites and the abysmally, low res road texture.
It reminds me of GT HD, which also had some terrible looking environments but everyone was happy with the cars and were sure it would be fixed in the final game.
IMO it makes no sense to have such huge disparity in visuals, I'm sure the other tracks (especially the city ones) are far better looking - why can't they make a simple track with just grass and trees look passable, it's hardly a demanding environment to render.
I mean it's not like they haven't had enough time - it seems like a massive oversight by a supposedly perfectionist studio