It still stays an unrealistic view. I never driven a car where I could not see at least a bit of the nose/front of the car. Well, Golfs in this case, XFG looks a bit like a Golf. Before people start quoting me with Smart/Aygo pictures. I know seats in race cars are mounted directly on the floor but even then its possible to see the front of the car (My body height is 2m/6.5 feet but even when shorter I think real life perspective is different).
Thats the problem I have with LFS, when I configure in car view I always get the feeling I watch an aquarium with fish in it. Only with LX4/6 its possible (+OW cars) to configure the Y/Z and pitch in such a way you can see the nose/wheels a bit. But even configured like that it still looks/drives strange.
I'm skeptical that LFS in 3D mode will change this in-car experience completely.