The lighting system is still pants. Too much ambient light, not accurate enough dynamic diffuse light. At least they've done some work on the shadows, but they're still not as good as Forza 4 and the car dynamics / physics still aren't as good.
Totally agree with tuxsavvy about F1. It used to be about innovation and being on the cutting edge of new technologies (often invented by the team), but has been limited by the rules more and more so that innovation is discouraged and we only have incremental improvements of existing technologies.
List of F1 technologies and innovations that are in use in modern cars:
Ground effect aerodynamics (flat-bottom, diffuser, splitter, etc), advancements in turbo technology, differential braking (brake steer, used by Audi), fuel injection, gearbox technologies, multilink suspension, radial tires, overhead cams, carbon ceramic brakes, carbon fibre tubs (safe structural cell, like on Mclaren MP4-12C), etc.
List of F1 technologies we COULD have in modern cars if they weren't banned:
Active suspension, rotary valve engines (Mercedes built a functional engine, but Renault got it banned before it was used), tuned mass dampers, ceramic engine components (and other advanced materials), etc.
Technologies already used on modern cars which are banned in F1:
Active aerodynamics (Pagani Huayra), four wheel drive, active differentials and advanced traction control systems, four wheel steering, etc.
I put etc after each as I'm sure there are some I haven't thought of / remembered. In essence an innovative car designer could make a "more advanced" (and quite possibly safer) car for the road than current F1 cars.
Motorsport is supposed to showcase innovative and cutting edge technologies, providing a competetive development platform for engineering, so the most advanced HAS AN ADVANTAGE. Then innovations are developed to the point they can be used on expensive, low production number performance vehicles. As they are used more, the costs drop and they end up on "normal" cars.
Without this way of introducing new tech, car technology has stagnated. Manufacturers make tiny incremental improvements just like in F1, but it's very boring. F1 does need limitations (such as having a limited quantity of fuel for the race or maximum fuel flow rate, etc, which would encourage efficiency), but the current rulebook sucks. They even limit the angle of the v of the bank of cylinders.