The Track editor, that could be very similar to what MNR has, but replacing the cartoon look with something more photo-realistic. I dont think the question is so much 'You can't create anything serious with a gamepad' because thats fairly obvious, its unlikely that in order to create something thats generated on-the-fly like MNR, but with photo-realistic models, IMO the PS3 cant handle that - its too much data & rendering.
Even if its ultra low res, low poly models in the editor, i dont think we'll see a truely in-depth editor which would allow us to accurately replicate a track to the standard of GT5s other tracks.
All of MNR's disc based tracks are created 100% with their in-game software, theres no way thats the case for GT5. So what we have to accept is that its either a very basic level track editor, or its not the GT5 equivelent of what MNR has, but more incommon with the LFS AutoX editor.
I'd be more than happy with a very basic MNR type editor, i think grumbling that we couldnt create somewhere like the green hell 100% accurately so its rubbish is beyond the point. If it was like MNR, where all you start with is a vast open space of land, you put down a track, shove in grandstands, buildings, run-offs & gravel traps, block trees (not individual trees) and some sort of hilly landscape etc... Im not knocking LFS when i say this, but theres not an awful lot of difference from what ive described above to somewhere like Aston or Westhill.
I dont need an editor which gives me control over every tiny detail, i'd take something that allows me to race on a custom made venue which might not be uber realistic but is certainly recognisable as your driving around. Tracks like A1 Ring, Oulton Park, Zolder, Hockenheim... those sort of locations could be created by individuals to a standard which we'd recognise and be able to race around, without having to have precision on everything. Creating venues like Abu Dhabi & Monaco... thats another matter, and who'd expect to see a tool capable of making a venue like those 2 on a console? Heck, even a PC game (built in) as well as being user friendly too.
I'd love a track editor, MNR have shown its very doable with very little effort on the users side to make something drivable. Those who put in the effort will create something far better, but its managable for everyone. I do think a full on track editor as i've mentioned is still a little unlikely, Kaz always aims for perfection and if he's not happy with something he wont add it. So whatever they'll provide it'll be something they're pleased with... but it could still be an Auto-X arena & track editor.