LFS players knew all along that it was a small development team, and early on, many of the LFS fans seemed to be proud of the fact that the development team was so small. It was obvious to a few of us that this would result in a slow development cycle, and I was considered a pessimist when back in 2005 soon after S2 release when I estimated that S3 would get released sometime in 2009. This probably would have happened if it wasn't for the setback with the tire physics. Also S2 ended up with a bit more content than some of us expected, so what we have now is more like S2.5, compared to what S2 was back in 2005.
I don't see the Scirocco as a big deal. It's a front wheel drive econobox, not exactly an exciting car.
Actually I'm a bit surprised that they're willing to re-implement the tire physics model for S2 now rather than just live with the current model and save the physics re-do for S3, since each stage was originally planned to include physics improvments.
Other than the Scirocco, I'm not sure what else was planned to be included with S2, if anything, beyond what we have now, so maybe consider the tire physics re-do as a preview of S3.
Again, the physics re-do seems like a monumental task, I just hope they eventually get something implemented that they're happy with.