I think, that prehaps rather than comparing LFS to real life, which is next to impossible because real life is real life and LFS resides in a computer, prehaps what you need to look at is the Principle involved.
If the principles are the same for LFS as they are in RL then what else can LFS do. For me, a car in LFS handles the way I would expect but also doesn't handle in the way I expect. Slighty counter-intuituve but lets see if I can quantify that statement.
I have been driving for nearly 13 years. In that time I have driven anything from big v8's RWD's (Not owned) to my general FWD small engine run about. I've owned a Semi high, semi long RWD transit (Which is great fun btw. I really reccomemd it to anyone. Great eduactor in car control that was) a BMW 5 series (RWD again.) to a triumph Spitfire to a Lotus Elise and up to articulated lorries. Each vehicle give you something to learn, but the general principle will always be the same, you have a finite amount of grip and a finite amount of power which sometimes is at the rear, sometimes at the front and sometimes split both front and back. You learn how to cope with doiffering situations in different ways, my way was generally the crashing way. Which is seriously scary and I wouldn't recommend it to anyone.
What LFS allows me to do is drive like I know I can drive like but without the recourse of serious injury, death or an expensive insurance claim. LFS allows me to do that because it operates along the same principles that real life does and for me it's that that makes it realistic.
I know that a car taken beyond the limit will turn around and nbite you on the arse and leave your kids with a healthy Life insurance payout. Thats what real life does. In fact, I don't want LFS to be realistic. because real is scary, really scary. And expensive.
So LFS . . keep the principle just don't get anymore realistic . . .Thankyou.