LFS shouldn't try to simulate "racing with a head brace and blinders."
Sure you can look around in LFS, but you can't keep an eye on the road in front of you while you do it, ergo it's not realistic.
I say you should at least get the little name indicator if you would normally be able to see the driver with ~180° FOV. Low FOVs in LFS are just more realistic aside from the obvious loss of periphery.
IRL I would know that car was next to me without looking through a fisheye lens--why shouldn't I be able to in LFS?