Damage your suspension or tyres and you'll see that it's not that easy. A small damage will probably cost you half a sec per lap and lots of tyre wear.
Bodywork damage is not really a big issue, remember Alonso doing qualification laps with broken body?
Feeling like inside the cockpit is not possible at all in any game
you'll need a real cockpit.
I'm not sayin' lfs is doing that great, but remember lfs is still doing the best online simulation with minimum requirements.