In its current form, LFS will be dead in 10 years.
Unless the whole graphics side of thing sees a major overhaul, and there are significant content additions, it really won't continue to stand a chance in the sim racing market. LFS' graphics have already been labelled out of date by some (although I personally think they're good compared to rFactor, for example).
Until the low-poly models and hideously low res interiors of the S1 cars are improved, it just cannot compete with some of the new releases. These somewhat detract from the new level of detail and quality first seen in the FBM, and continued through the Patch Z interiors and Scirrocco/Rockingham.
The core physics engine is (IMO) quite safe staying as it is, as it continues to be above even the latest games.
A major new release / series of releases is the only thing that will keep LFS going for another 10 years. I don't see how a game that will effectively be 18 years old can compete with fresh releases that make use of the latest technology and software/hardware capabilities.