Should have it like intergrated where you can jump from pshome to GT5 with out having to quit and stuff. Also would be cool if you could drive your car that you own in GT around like streets and stuff.
Jumping from PSH to GT5 won't happen. And I believe Kaz mentioned creating a city where one could get in and out of their cars and walk around (which sounds quite neat), but then again we were also supposed to have decent damage modeling and the first really complete GT since 1997.
Another claim was that the PS3 is supposed to be good for 10 years, so if Sony sticks to that we won't see a console that can handle the GT experience we demand until... 2016. Right.
Long story short, neither Sony nor Polyphony seem to have it together or know what the next steps are.
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To answer the question now: should there be an environment/living space? Definitely. It would be almost easy to have a selectable garage environment (like the warehouse shown in the intro, a hangar, a PSH style garage, etc), choose six or so cars to have on display, then utilize the photomode way to walk around the environment. It would be a sizable add-on, but a very achievable possibility. Also would be a great way to make the community portion useful, as you could have lounge access and player interaction.