I agree that in the end a dynamic environment is needed to properly simulate racing, however a strictly static environment helps greatly in identifying core issues with the physics that would otherwise be masked. Sure, a fully dynamic simulation would help hide some of the most blatant flaws that came to light during the years of hotlapping and searching for every way to exploit the system, but hiding problems instead of fixing them is not the way to go, IMO.
Besides that, that the tyre simulation is "good enough" might be true for other sims (I doubt), but unfortunately not for LFS. It is very good indeed, but still lacking in core aspects such as tyre heating, temperature effects, pressure effects, longitudinal grip, flatspots, etc.
Another thing I'd put before the environment simulation is a proper damage model. The amount of abuse LFS' cars can take is phenomenal and leads to a lot of the far too risky and gung-ho driving behaviour we see in LFS.