I'd rather have the jaggies and higher frame rate, personally. If it dipped below 30 online you'd be out of the running and probably take out a load of people with you. If it dips under 60 that's not such a disaster.
And I don't notice the edges when I'm driving anyway.
The only improvements I'd have if we could, would be dynamic weather and terminal damage. I know you can damage your car enough that it won't move, but I mean like actually tearing off a wheel or something if you hit a wall. Even now your tyres can get to 100% wear at 200 degrees, but you never see them burst or anything.
And weather would be great for having to plan pit stops and alternate lines.
I've used (briefly) Logitech's 360 wheel with radial feedback (how does that compare to FFB anyway?). It was a swine to set up and it didn't really work with me balancing it on my knee. Shame, because it'd add to the whole experience. It was a loan though so I don't have it now.
I'm also up for a LFS/Forza get-together. The balance between S and D class is around B, so we should run those