You will never be able to recreate a 'real' riding style in a computer game. There is too much to factor in. When I do track days here in Australia not only do I use my body position when cornering, but have the ability to look as far ahead as possible to where I want the bike to be. There are so many things that us riders do when riding that there are not enough buttons on a controller to recreate them.
I do like to get the knee down in hard corners, but to be honest half the time you don't need to. The reason bikers do get the knee down is:
1: Looks and sounds fuggin great!
2: An indicator of how far you leading the bike over in a particular corner.
3: Can help keep the bike stable if you know what your doing.
Having said all that, I think that TT has been long over due that is the best racing game that I've ever played! I just hope that it will encourage others to take up riding and see how much fun we have!
For those of you that do ride and want to improve your style, look at 'Keith Codes" A twist of the wrist. Its a very dated video, but a rider bible of how you should ride.