I know and feel your pain about how the graphics look in LFS, because everything is quite simplified in some areas. Detail of the wheels, suspension, cockpits, and so on, it could all be improved.
I haven't really seen many graphics improvements for LFS in a long time, and it seems they are reluctant to make things 'super nice' looking. But they do work on a few graphical enhancements here and there, but knowing that they have that planned for S3... I guess we have to wait. Would be well worth the wait once we get a new graphics engine or something