Yes I would like to have more realistic damage. In fact any damage at all. There are racing games, mentioning no names, who do have a damage engine in their games and it makes for a whole different experiance. After racing the GT games, coming to that game there was so much more I had to learn - learn to avoid other cars, to not bounce off the walls, etc. I'm not saying that doing these things in GT is a good thing, but there are times when you do get lazy. Or, at least I do. Y'know, when you're in 4th place and you've only got 1 lap to go and you want to win this championship now, you don't want to have to go through all 6 races of the championship all over again, so.... you barge your way into the lead, y'know, brake into a corner so that you bounce off the AI cars on your outside etc.. we've all done it. Or, as often as not, you're simply not aware of the fact that your driving is less than perfect.
Once I got damage I had to practicaly re-learn the driving, I had to be more aware of other cars, not brake too late or too early to avoid hitting or being hit by other cars, and to find a line through corners that avoids ramming into other cars on the exit. Etc. So, yes, damage would be good thing. And more realistic AI, but thats another story.