32 players online will be fine. P2P will just about work at that scale for most players with a "half-decent" connection.
If you can host at least a 7 player race in "fixed room ownership" mode (i.e. client-server mode), then you can participate in a 32 player P2P race with the same "quality". Roughly speaking.
If you can host a 16 player race in client-server mode, you can participate in a 200+ player P2P race. That's why dedicated servers are so important for large scale games.
This only considers upload bandwidth, and ignores the non-physics aspects of the online mode communication, and it ignores latency. It also only considers GT6.
For offline, it's much easier, just do what Sierra does, and graphically switch cars on and off according to range (including purging from memory and streaming new cars in), run "lower detail" AI and physics routines (or run them less often) for those cars when far away. Lovely. Replays would look weird, but they do online, too... It probably wouldnt (/shouldn't) be available for short tracks. Still a big decision and technical commitment to make for potentially not much gain, in GT6.
@WhistleSnap, I expect nothing would change, because the number of AI opponents is determined by the event descriptions themselves, from what I've seen. Looks like there should be plenty of ways to get some entertainment out of breaking the game, if you fancy having a crack yourself.
