I hope everyone realize that real world is very different to gaming engine world... in games visual representations have nothing to do with physics, actually visual 3D models and tire deformation models have nothing to do with physics.. All game engines have frameworks (most of the time already written or recorded, so they use old stuff to create new...) for Physics, Audio, AI, Networking, Graphics, Optimization, Logistics etc... GT sport could look like Brick driving on the cheese roads with triangle wheels, but if the physics numbers are set correctly and car recognizes itself as a car on road surface, tire flex could be there taken in mind, it even could be there in GT4 or GT6 (not saying it is there, but it could be there taken in mind, even if its not visually represented!). There are many ways to do things, most of the game developers cheat.. Dirt for example, amazing looking game with great details, that's until you drive it for months and realize its still quite empty in physics department, (but still fun)!
Games like GTA5 with its crazy interaction engine and amazing crashes looks like its a whole universe which works like whole, but its just many layers of "programs" and "cycles" working "together" really well, and there could easy be made tire deformation in GTA5, but it doesn't mean that GTA5 has realistic working tire deformation "physics" model, my point is that you should never believe in visuals, because it just might be an empty visual with no purpose like in a Flatout game!
GT is still my favorite racing game, so I hope PD makes it properly as always best for its time!