I like the direction they are heading with GT. The physics are a decent improvement over GT6 and for me it's much easier to drive on a pad than any other sim game I've played, good feedback too. You can drive more on the front while older GTs it was more like with the rear. Now they just need to fix traction issues and FWD handling, then it will be much more enjoyable to drive.
Sounds are getting more realistic although a bit tinny, it needs more bass.
The safety rating and penalty system I don't think work well enough. I haven't tried it how it is in latest update but in old version, you could be in a race that is a bit like demolition derby and still keep S rating and improve it as long as you stay on track on your own accord. Penalties can be a bit controversial but I guess it is a bit like how FIA implement it. I remember when Vettel moved under braking to cover Ricciardo's dive-bomb in Hungary last year and got a 10 second penalty for it helping Ricciardo to end up with a podium position. Also tactic of bashing the lead driver out the way was done in last FIA F2 race this year on last lap and race victory was reward. I can see why the game awards penalties in the manner it does and why some players drive the way they do given optimistic dive-bomb drivers tend to be rewarded in real FIA sanctioned races and that's sadly the way it also is in GT SPORT but to an even greater extent due to lack of serious damage and casual nature of it being just a game. Thankfully it's easy to get rid of big time penalties so isn't all too bad if you get hit with a ridiculous 10 second penalty by being hit by another driver, however probably possible to game that to some kind of advantage.
Driver rating looks like it works better. Lower ratings it seems you are treated as a peasant caged with other peasants and then let out near the end to battle on qualifying laps and race like it's death race. Thankfully it doesn't take too much effort to go up quite a few ratings where it gets much better and feels a lot more civilised although a tad boring. Highest ratings seems like a long grind so should be a sign of competency if one gets to A and S will be like you stating you live in a basement to other players.
Anyway, I think it would be awesome if Sony were to release a next-gen handheld console next year with GT available on it, I would likely play it more then especially if a much faster CPU allows for better gameplay. I think it would be great timing for a handheld next year if possible to release with 7nm SoC that has Cortex A75 and A55 cores, should stand the test of time quite well then. They could use any further advancements in hardware to up the resolution or just reduce power consumption for better battery life. GT SPORT seems already ideal for a handheld game due to fast loading, touch input looks like it will work well with UI and motion and standard controls are top notch.