I played GTR2 for a tiny bit, it was ok, but I hated the multiplayer. Every time someone connected the game would jump and it was hard to get good races in with everyone lagging.
Single player was fun, but the engines sounded flat to me and the physics were good, to a point, they they went south pretty quick for me.
Glad you enjoy LFS, IMO it's the best to be had for physics currently and the best thing is, it's still WIP and being developed so personally I like the idea that it can only get better from here, and I don't have to pay for it! well much more when S3 comes out which we must be nearing in the next year or so, but thats just assumptions.