Yeah 300 feet was probably a little bit of a silly exaggeration, but it's still obvious how bad every game I've ever played is at conveying the atmosphere of distant sounds at a racetrack. I'm not sure what the posted video was supposed to illustrate other than the fact that you can absolutely hear race cars from a much longer distance than in any game. They don't simply turn completely silent once they get a little ways away. But I only watched the first couple minutes of the video, sorry if there's something else there.
This isn't a big deal issue to me and I can understand a variety of reasons it would be technically difficult to really get right(hell, it seems to be pretty hard just to get cars to be audible near you without drowning out your engine), but it is a very noticeable one in replays or when just watching track activity while you aren't driving. More along the lines of an "it would be nice to see some games get this right before I finish getting old" thing.