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It flashed up for every sector in GT4 B-Spec, and as far as I'm aware it still does in A-Spec...
Yes, you're right. But the gap displayed in the timing screen is only for the last lap. Perhaps they only display the end-of-lap gap in the "onboard" mode so that there's not "more information" in that screen. A bit silly, but PD are known for their strange decisions in the name of "consistency".