I can't think of a racing game that looks better either. But I still think the way that PD handles trackside objects feels a little wooden to me. Here's another one:
From 0:11 to 1:30. There's something just odd about the hills in the background. They look like simple terrain surfaces with a high resolution texture applied rather than fully modeled assets...which is totally understandable - you can't get to that area, so it shouldn't have a ton of resources thrown at it. But they are also equally sharp regardless of distance. I live near mountains, and this isn't really common...even on clear days there is usually enough environmental haze* to make the peaks of the mountains appear less sharp than the closer/lower areas. It makes them look flat and small the way PD has elected to render them. The non-city backgrounds in GT7 fall a bit into the uncanny valley for me. They are rendered with such sharpness, but the level of detail isn't quite matching. It kind of throws me out of the scene a bit. If there was a tad bit of DOF, a little bit more volumetric haze, a touch of heat waves, just to ease the sharpness a little bit, I think it would go a long way of pulling out of the uncanny valley.
edit: *This is what I'm talking about:
Without that haze, the distance you perceive in the image would collapse and everything would feel small & close. This is my issue with GT7's visuals. Everything is too sharp...there is no hierarchy of sharpness/clarity which flattens everything.
edit 2: Ok this appears to be a time of day thing, because another clip with lower angle light of the same circuit feels way better, and has the haze I'm talking about:
It helps immensely. Without it (like the first clip), the hills look small, too close, and fake.