I think LFS has Natural looking graphics especially if you can crank up the AA and AF, I play on 1600x1200 with 6aa and 16af and to me it looks stunning, sure there's no fancy DX9 effects and theres still a lot of room for subtle graphical enhancments like windscreen dirt and the odd splatted fly or 3 but apart from that I'm more than happy with LFS's graphics and I'm also playing games like project gotham 3 on the xbox 360 as well as rFactor, GTR, richard burns and GPL and LFS holds its own against them.
As for handling. You really need to try the full game as you will most certainly feel like you're wrestling with a beast of a car when you're cornering at 150 mph in the GTR cars.
As I said, I own and play most of the other sims regularly and LFS for me still has it's own unique appeal which is lacking in other games, just as rF and GTR have their own unique qualities.
If I could only have one though it would probably be LFS for no other reason than the ability to jump online any time night or day and find a busy server as I love multiplayer racing, even though I end up in the back of the pack
