cobragtForza's damage is weak. I saw a gameplay vid with a LMR in it, it hit the wall going 50mph and nothing happened to the car. I might have got a dint but that car is made out of fiber glass, correct me if I'm wrong. That car should have been destroyed, I'll wait till the ps3 for real damage.
It's possible to switch off the damage or choose limited or fully simulated
damage (probably not visually) according to the developers.