I'm not sure what they are doing, what the secret sauce is, but I'm almost thinking they run an entirely different or upgraded rendering system when they switch to replays. The key win they have on us is the quality of the motion blur, which we're still working to improve for pCARS2 and the way they use focus and bokeh in the replay cams.
Isn't a dynamic time of day still absent from GTS? Static lighting is much easier to get perfect than what you are doing with pCARS' lighting and weather system. I think the GT series looks absolutely phenomenal compared to the competition, regardless of the console generation, but it comes at a price. I think taking into account the dynamic look pCARS offers it destroys the competition. For me the potential shown in the next 7 seconds of this video absolutely worth slightly worse looking replays and I haven't even seen what pCARS 2 has to offer:
pCARS3 in the next 7 years will be just money grab and don't even try to defend them. There is no need to postpone pCARS2. They can slowly but constantly improve it after the release (rain effects, motion blur algorithm, UI etc.).
Not a money grab at all. Like others mentioned, developers need a constant stream of revenue if they want to stay afloat. The business model of SMS at the moment seem to be bi-yearly releases, with DLCs and free updates in-between. I'm sure the lifetime of their sims could be extended beyond that, but you can only update a game engine so much, eventually the result would be dated anyway (there are example of this in the PC sim space I think).
The only real alternative would be having a monthly fee, which to be honest wouldn't seem like a bad idea to me, given that it would mean constant official, online events throughout the year, structured similarly to iRacing.
Moore's law is not working anymore, and there is no such progress in technology to justificate releasing pCARS3 in the nearest future.
Moore's Law is very much in effect still (it's more like an observation really, not a law), although the increase in transistors means more cores to utilize nowadays, instead of a single, more powerful core like in the somewhat distant past. This means that it's harder to fully use those extra transistors today, but the potential is still going up sharply.
Regardless, mentioning Moore's Law doesn't make a whole lot of sense when we are talking about a business decision.