Just got back from E3. If LFS was used anywhere on the floor, I couldn't find it. It was a very sparse event for racing, overall.
There was a giant poster from Intel with the BMW Sauber F1 car in one of the halls advertising racing simulations in their booth. That poster had the rFactor logo on it. I checked out the booth and they were running the rFactor F1 mod on VRX racing chairs with the DFP. Don't know if the wheel wasn't working right, but it felt sloppy.
Logitech had two openwheel racers outfitted with the new Logitech G25 wheel and shifter and running triple LCDs using the Matrox triplehead2go. That display system was beautiful. I stood in line for the racing and it was ok. Also running rFactor, but just stock using cars with logitech skins.
GTR was not on the main floor. There was a big screen running a video for Xbox 360 GTR in the THQ booth, but no presence. Simbin was doing closed door demos of GTR2 in the 10tacle booth downstairs in Kentia. I had the opportunity to attend one of the demos and it looked good. No idea how it feels, but they did say that they received a lot of feedback that GT Legends was too arcady, so GTR2 supposedly has a strong sim focus again, but offeres racing school to make it accessible for non-racers.
Also in Kentia, VRX had another one of their chairs running GTR.
GT5 was shown at the Sony booth in 1080p (not 1080i, but p!). It was basically photo realistic. Gorgeous.. Nordschleife even had all the grafitti on the road that you see in videos. But without a wheel, i can't pass judgement on it. It was also marked as 20% into development.
Finally, MS announced Forza 2, but if they had anything at all, it was behind closed doors and I was unable to get at it.
I'll have a couple of pics later on, once i get settled back into things.
The rest were arcade things like Test Drive Unlimited (which was fun, but not a sim in any respect), Flat out 2 and some others.