Here's another similar diagram that maybe will explain what I mean:
http://www.performancesimulations.com/files/steering3.jpg
The black boxes represent tires in a top down view. The upwards direction is the direction of movement. The difference between the angle that the tire is facing and the direction it's moving (the vertical) is the slip angle, as we all know.
From top to bottom:
#1 - The tire is below the peak (it might be at 5 degree slip angle or something). The red line is the "tire lateral force," which is always measured in the tire's plane. I.e., it's always sticking out the left/right of the tire perpendicular to the direction the tire is facing. When you see a Pacejka graph or a chart of lateral force versus slip angle, you're looking at how the length of this line changes with slip angle. (The larger the force, the longer the line). The green line is the sideways component *in the car's coordinate system.* I.e., when you hit the F9 key in LFS you're looking at the lateral acceleration of the car, not the "tire lateral force." The blue line shows "induced drag." This is what causes the car to slow down more and more as you add steering. The F9 key shows lateral/longitudinal acceleration; the green and blue lines.
#2 - The tire has more slip angle and is producing more lateral force (the red line is longer.) Also, the green line in this case is longer too, so the lateral acceleration is higher than it was in #1.
#3 - The "tire lateral force" has reached its peak. I.e., we're at a slip angle where the red line is as long as it's going to get. If we assume the "tire lateral force" does not drop off at all as we increase slip angle beyond this, all we're doing is taking that same length red line and swinging it further and further towards the rear of the car as we increase slip angle further.
#4 - Here the tire is still producing the same "tire lateral force." However, notice that the lateral component in the vehicle's coordinate frame (the length of the green line) is getting shorter now. At the same time, the blue line (induced drag) is getting much larger now. As this blue line gets longer and longer we are getting more forward weight transfer. This will actually make the red line longer, but it may not increase it so much that the green line increases beyond where it was in #3. If it doesn't, then we are getting more and more understeer as we increase the front slip angle further. If it does, we'll continue to turn in harder. Whether or not this happens depends on the CG height to wheelbase ratio. The higher the CG is in relation to the wheelbase, the more front weight transfer we'll get (which increases the length of all the lines).
#5 - Here's an extreme slip angle. Notice that we've got hardly any lateral force *in the car's coordinate system*. The tire force is still the same and in fact, due to the forward weight transfer, will continue to increase. However, the green line is still very short so we have very little lateral acceleration now. The car is understeering like crazy even though the front tires have not lost any grip at all. It's just that the direction is all pointed rearwards instead of to the left of the car. I.e., the F9 readout will show a very small lateral acceleration. At some angle I'd expect it to be 30% of whatever the peak was
Now, here's the kicker. This happens regardless of whether or not the "tire lateral force" curve drops off or not. I.e., if that red line hits a maximum length and stays there as we swing it out towards 90 degrees slip angle, we'll still get understeer at some point (the green line will tend toward 0 length as 90 degrees is approached). In fact, even if the tire lateral force never peaked at all but continued to grow all the way out to 90 degrees, at some point the car will still understeer. I.e., the green line will eventually drop below it's peak.
The F9 display shows the length of the green and blue lines, not the red one.