As long as the cars handle in a consistent and enjoyable manner I get the same enjoyment from an arcade racing game as I do from LFS. On the face of it they offer the same thing, the ability to maximise your skill and the cars limitations against a variety of opposition. If you want anything more than that in the sim racing community then you need to enter into organised leagues, or spend the money and get iRacing. Those things are not an option for me, my shifts at work are random, so I can't enter into leagues or pay a lot of money for something I might not play for weeks. F1 2010 offers the opportunity to have a career mode, where you work your way up the grid and get rewarded for winning races or performing well, and it requires no extra effort on your part to do it.
How realistic the physics are only becomes an issue for me when a game claims to be a simulation when it's clearly an arcade game. Otherwise it's just what comes naturally, for example it took me longer to get to grips with PGR than LFS, because LFS made sense to me, it was based on real world physics so the cars did things I was expecting. So whilst in PGR I can be 3 or 4 seconds off the best laps, in LFS I usually get to within half a second of the WR on most combinations.