Damage, Damage, Damage. Virtually all topics always come back to this "issue". From what we've seen in previous demos, the damage is decent, there is no way that Kaz would have gone a step back after most people were satisfied with the latest demo vids showing damage. Either the GT5 up-loaders don't know how to switch the damage settings or the damage effects are progressive to ease the players into the game, i will eat my shoes if the GT5 vids showing damage are the highest damage setting in the game.
Are there any vids showing simple effects like sparks etc? That the final damage setting is yet to be seen. Even mechanical damage is yet to be seen in the current vids, like i said i doubt Kaz would have taken those out the game.
The theory that damage gets progressive in GT mode is plausible just like AI difficulty gets progressively tougher. Its way to early to make so many stupid assumptions until you either get the game yourself or someone reputable can make a clear cut review.