Scaff
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Other titles show this is not actually the case.It still takes modeling work to render damage in vehicles, and that they are limited by licensing to keep it as minimal as possible (considering manufacturers don't want to see their cars depicted as damaged or destroyed beyond recognition).
Having worked with a lot of OEMs I can also state that it will vary between OEM and the stance on it has, overall, become more accepting over the years, particularly with regard to race rather than road machinery. A big gap exists between damaged and destroyed as well, and while more will not allow damage to be shown that would result in occupant injury (so no safety cell intrusion or damage), race ending damage is more than OK for most. Hell you can include race ending damage in a sim simply by modelling suspension damage well.
It's perfectly possible to show damage to cars while also celebrating them, it's not a binary choice.GTS is my first entry in the GT series but my impression so far is that car damage is not what they are after at all - they are celebrating cars, not trying to wreck them. So I think it must be very much intentional to not show much more than a dent or scrape.
Your logical fallacy is black or white
You presented two alternative states as the only possibilities, when in fact more possibilities exist.
yourlogicalfallacyis.com