You need to stop thinking in general games terms. LFS does a hell of a lot more physics calculation wise than most other applications. If you can dedicate an entire thread, and ergo an entire core, to purely physical calculations (so that calculations dont have to stop in order to draw to the screen, etc.), you'd be able to run at a far higher resolution, only asking the physics thread for information when it's needed (such as where are the cars x, y and z right now).
Oh and as a final rant, fps is not a good measure of performance.