Quick reply: Is it perfect? Nope. But it still feels pretty good. It's pointless to compare LFS's grip to another sim- frankly, any other sim will do it a completely different way so of course there will be a lot of differences.
What I've noticed, (and I've played LFS for a LONG time now) is the interaction with longitudinal grip. That's the part that just isn't right. Lateral grip, without a lot of other influences, works pretty darn good- all of the cars keep lateral G-forces very close to what a real-life car can do. Both with slicks and road tires. But the problem arises when longitudinal grip comes into play. Coming closer to the edge of grip either under accelleration or braking throws the lateral grip completely off- in an unrealistic way. An easy example:
The UF1. Low-powered, open differential, narrow tires. Easy to compare to a lot of real life "normal-people" cars. I had at one time a 1984 VW scirocco- very similar to hp/weight ratio of the UF1 and it had narrow, low-performance tires. Drive the UF1 hard, like in an auto-x situation, and the tires just spin and spin and spin all day long. Or do a drag-race style launch with it, and it will spin the tires easily for a very long time. My Scirocco could spin the tires pretty easily but doing a "drag race" style launch, it would spin the tires through most of 1st gear but it would also accelerate pretty quickly and have full grip by the time you were ready to shift to 2nd. The Scirocco was fun to auto-x, and even in 2nd gear out of a really tight turn, the inside tire would at the most just chirp a bit under full throttle. And the suspension was unmodified so there was a lot more body roll than what the UF1 in LFS would have.
This shows up in the more powerful RWD cars as having an extreme lack of lateral grip when in reality the lateral grip is fine until you either apply braking pressure or throttle input. Even the Raceabout, which is hated by most people on here, is capable of a lot of cornering forces, but the moment you touch the throttle the car gets out of shape.
I know LFS follows the "traction circle" method (at least the last time I heard so it did) for grip levels in tires, but in reality the traction circle does not always apply- that is, many times the "circle" is not actually a circle, sometimes it's a trapezoid or a square. :P
I'll also say that I'm happy that LFS has come this far. I'm not worried either, I'm confident that the grip issue will come around eventually.
Brendan