Too tired to read through all the test, but Hi-Res pack can be used. I run the game with all stock textures and with lots of AA and AF you can make it look decent. Here's what my game looks like with stock textures, 1680x1050@59HZ full LOD, all three, negative on the dynamic LOD reduction, and using Nhancer to force 8XMSAA and 16XAA, that's all.

Obviously this was before I discovered the Shift+F :sadbanana
Anyways, as it is, it's really not bad considering, however with every mod made for LFS all installled(I saw 3 seperate pics of, they all looked a tad different, diff modds I guess, it still wouldn't come close to a racing game built from the ground up with DirectX 10 tecnology, or even a DX9 engine with DX10 effects(Stalker - Clear Sky, Bioshock). I'm not sure but I believe LFS is based on DX8, if so it's quite impressive actually. If anyone has played Nexuiz, it's a fine example of how far you can push an engine, and it's a free FPS built off the quake engine, which must win the award for the most heavily modded engine ever. Quake 1 is old school, Nexuis has built it up to have/ Full Dynamic Lighting, ((In a Q1 based game!!!!))
If you want LFS to look better, there are guides to improve the graphics, but you'll never get the graphics posted in your pics, especially the one from GRID, to look like LFS.
This is actually a valid and welcome topic for me. Making a game look better isn't hard, it just takes time, or money, or license another's graphics engine. Scawen said it best, I can't remember his exactly qoute, it was in a video but basically he made the point realism should succeed visuals, after all, the community at large are simmers not your typical arcade racers. (OH, for the first time since NFSU2(Fantastic phyiscs for an arcade) I've found an arcade racer I like, GRID, enough that I'm going to buy it) "Good enough" physics, great graphics, and just lots of fun to play. The cockpit view is great, the damage is really good looking too, worth downloading the demo if you have a decent video card .