I've pictured it like this:
They continue to evolve LFS as a pure racing sim. And they branch off, and produce the most insane streetracing-game ever, making it possible to do things the way you can in other games.
Like letting the artists of the community make car-models to be added to the game, same with wheels. Getting more serious with the LFStweak-side of the game perhaps, so we can have "gatebil" kind of racing or "racing"! :P
Diversity is what i feel is lacking, so even though there are several cars to race, I find only a couple of them fun!
I know adding more bodies (of actual cars) to the game requires licenses and such, but having them as addons, wouldn't that get rid of the license problem? Having the community together with the "management" decide what cars should be added, could prevent the mess of to many different ones being added...?
I'm just blurting out what's on my mind here, please don't flame.. :P