It is quite unusual in current games to include split screen modes. It's pretty miraculous that GT7 includes it.
Split screen modes are a headache for developers because they mean having to optimize games for graphical loads that are very different from full screen ones.
The split screen mode must represent 2 or 4 scenarios and multiply the cars eventually visible on the screen. If the 4-player mode allowed the participation of full grids, 88 cars could be put together on the screen at the same time and that despite using lower levels of detail with fewer polygons is quite overkill for any graphics engine.
In short, the level of detail of the game is designed for solo or online mode. Allowing full grids in 4-player split-screen mode would require its own graphical approach with a lot of time to optimize it, the number of players using 4-player split-screen mode is very small and the number of potential buyers who could decide for buying GT7 mainly because its mode at 4 is close to 0, so it is not a profitable task.