Haha, I'm going to revive this old thread!
I've played fisheye quake a little while back, and it popped into my head while I was racing a few nights ago.
The single most aggravating aspect of racing in a sim is the field of view. Even with a helmet on, when I'm autocrossing or at a track day, I still have decent situational awareness.
I'm all for utilizing either the fisheye or the cylinder distortion methods mentioned above. Yes, they do distort your view somewhat, but they satisfy the basic needs for racing:
1) The track ahead must be seen in high resolution to accurately judge oncoming features and obstacles. This is usually aided by a low fov, making the oncoming track appear larger, essentially allocating it a larger 'pixel budget'. If all we did was hotlap, then this would be okay.
2) Awareness of other cars in overtaking situations. It doesn't matter if they're distorted, so long as you have an idea of where they are in relation to you. Even a band of 20 - 40 pixels, that showed the area next to you in a sort of super-squished view would provide the cue so you don't turn into the fellow next to you.
3) Mirrors simply don't have the resolution they should. On a high resolution setup (1600x1200 and up) with some anisotropic filtering and anti aliasing, the forward view down the track is actually pretty good in terms of comparison to the level of detail your eyes can resolve in real life. The mirrors however, especially the 'in cockpit' ones are not that great. Why not grab the upper portion of the screen, and divide it into three zones, one for each mirror? You still have to shift your eyes up, but they become much more useful.
I still think that one of the best resolved simulations in terms of awareness was Falcon 3.0, in the track/eye view. It was criticized by some for being unrealistic, but it did a much better job of replicating the true awareness, as opposed to focusing on drawing a pretty picture.
Anyways, that's my 2 cents, love the game!