I think it looks very nice on PS5, definitely a step up from GT Sport. Car models look fantastic, and while track detail isn't always amazing, the game can look very good.
The video makes a solid point about GT7's environments. Polyphony has done a great job at making GT Sport and GT7 look really natural in terms of color, lighting, and car design. It can definitely look lifelike at times; however this makes it easy to spot flaws in the world if you're paying attention. Especially in unflattering lighting.
I'm fine with them compromising on detail around the track if it means keeping an overall natural look to the game (I'm not a fan of Forza's art direction at all for example). The main thing PD could improve on is particle effects. We need more dirt, smoke, rubber, etc on the track, and cars need to look dirtier by the end of a race.