The licence system is fine ... you get the content you pay for
With the way LFS's development is, it should have been expected that S1 would all but die when S2 was released
What i do think is missing from the demo however is a GTR class car ... understand this is questionable not wanting to give demo racers too much content ... but on several occasions introducing friends to LFS, they were not convinced to buy S2 based on the GTT.
Having the XR-GTR in the demo would more accurately reflect what S2 is all about imo
It could also be considered the one concession for the few remaining S1 licence holders gaining a piece of S2 and tempt them to upgrade ... ?