I agree that the lack of REAL damage modeling is the main factor, ruining gameplay and immersion, but as current damage is just a placeholder(I hope so :schwitz, I also would guess we'll have to wait for S3 to get updates in this area...
What else can/should be done now, are further physics improvements - more complex aerodynamics (body+undertray downforce on race cars and lift on road cars). That and some tyre physics changes (longitudinal grip) will hopefully make LFS driving experience more challenging, rewarding and realistic - high speed slides must be much harder to catch than now, when you can never "completely lose control", and drifting must require way more skill and throttle control than current "flick&slide" affair...
That's of course my own opinion
What else can/should be done now, are further physics improvements - more complex aerodynamics (body+undertray downforce on race cars and lift on road cars). That and some tyre physics changes (longitudinal grip) will hopefully make LFS driving experience more challenging, rewarding and realistic - high speed slides must be much harder to catch than now, when you can never "completely lose control", and drifting must require way more skill and throttle control than current "flick&slide" affair...
That's of course my own opinion