All this GT vs Forza is more how they complement each other.
Forzas graphics aren't thet great, and the cars may not handle as realistic as GT, but its their first game, and its a close competitor to GT.
As for the damage I don't think it'll ever be crash and you're done type of thing, it would just take a lot of fun factor to it, I prefer a great coding on Force Feedback than on crashing, but the Forza type of damage is great, much better than not having any damage.
Forza 2 seems promising, I recently bought the
FF XB 360 Wheel which is designed for Forza 2...
Maybe it won't be the most real thing but I have fun, yeah more real would be much better but so far they're doing good...