As an game programmer I can just support Scawen's words... games take really lot of time to be created.
No matter how much the competition does push, there is certain amount of work to be done on LFS, and there is certain time window, in which it is possible to finish that work.
If competition is able to release 5 sims during that period, than so it will be. Either that, or Scawen will have to change the development team, but as he indicates, he's not willing to do that.
Actually I don't see any harm in having other sims released. So what? If you are bored by LFS, do something else. Play GTR2, GTR3, GTR4, etc... till the new version of LFS arrives.
Than download and see what's new, maybe it will be horribly lacking behind the newests GTRx.y.z, maybe it will be 1 lap ahead of it.
Scawen did choose this model of development and his goal, and it's his responsibility to fullfill his goals in a way he finds best. (i.e. the final release of LFS should be very good sim ... no matter when it will be released. That's how I understand their goal with LFS)
I think LFS is not (and can not) competing with big developers, so it's logical SimBin can release more games in the same period of time.
Actually I wonder how long SimBin will last, I don't think they can sell enough of GTR/GTL to stay alive with current huge dev team for long. Maybe I'm wrong about sales figures, and depends a lot on the cost of FIA licences and the effectivity of publisher (10tacle), but publishers and developers are ranting all the time about how poor the sales are, and I'm ranting all the time about how wild did the whole developing budget stuff go in recent years, no wonder sales are "poor", if you need to earn $20mil+ back to cover budget.