It's chassis flex (I think), and IIRC there might be one modelled but it - of course - chassis and axle flex would be needed first. Then again, S2 needed downforce ... and chassis and axle flex would be good on all cars anyway.
The thing is though chassis flex is very hard, virtual impossible, to simulate properly on a modern PC, look at RoR, that doesn't really simulate it to a satisfactory standard atm anyway, now imagine calculating 32 cars plus the rest of the physics. So we'd be stuck to look up tables or simple mathematical formulae, which would be better than nothing and probably ok for cars but for something where chassis flex is so much more important it is a rather ISI type approach to the whole physics thing.
hence the "I think" part of my post.
IMO it's essential because it's the type of racing just about every professional racer has started out in. It's a very pure form of racing and exciting because of that.
I think it would provide some excellent fun racing in LFS (as long as there will be dedicated kart tracks and not driving around Aston in it), and I think it would become very popular.
It has nothing to do with not being able to afford real race cars (not that there's any money involved in racing virtual cars anyway).
Michael Schumacher for example still liked to race karts when he was in F1, and I think we can both agree that he doesn't have any financial difficulties whatsoever.
So, a pretty short sighted response imo.
Body or chassis, english is not my first language, but I think were are talking about the same thing. Anyway that and axle flex like you mentioned are essential to be simulated before karts can be implemented. AFAIK currently all cars in LFS are stiff, except the suspension and tyres.