I think this is a case of not understnding what I am saying but what can I really do about that since I have explained it as best I can.
It just comes down to sometimes ugly textures help hide ugly geometry or at least not make it stand out as much.
If you don't understand how that works, ok, but it absolutely does.
what you are trying to mention in your post is the use of low quality textures to hide the low polygon count for each model,maybe you have work in 3D max,where there is a huge example of this,lower resolution textures will hide low polygon count,now as you know the 3D element had to be also integrated to the game engine and its features in example the mechanical damage,the dirt, scratches and other features if the weather is a feature in GT5.
Since this are 3D models that will be in showcase(in example garage)you point will be right,sadly the cars will not be only on showcase and the will be on the game engine, which have to manage the calculations for crashes,mechanical damage, lighting(but it will be another part of the cell that have to manage this)dirt accumulation and more features if they include weather then you will be wrong because they have to use newer dev tools.
Since this is a new console with different programming language and newer features they will not use old textures and re-script them to match newer standards,instead they use newer dev tools since is where my whole point goes.
Since 3D models are mostly use to be shown but not to be use,and for games the actual 3d model have to be use(in precise terms scripted) it has to keep up with the engine, which process and it has to maintain a certain amount of memory to don't crash or charge the console itself,what Kaz meant with"PS3 limits" he meant amount of memory usage because for the PS3 is 512 MB,and the ram model is faster but it has a limit of 512 MB.
Obviously we will see mixed races with premiums and standards but then the engine is configure to keep up with a single calculation for illumination that have to use a single calculation for a single programmed textures not two to avoid the massive memory usage with 2 textures types,even if they are from old gen it wont be as efficient as 1 single programmed texture.
you could be right about this but PD is not stupid and probably they use a single texturing to avoid a complex memory administration and usage.