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Because people want race cars. A true car enthusiast will fully understand, and love car modding to achieve a goal the stock car would never have had dreams of.
Not sure that I totally agree with this. I am a die hard car enthusiast but I am hesitant to modify some cars because I want to get an idea what that car would be like to drive in real life, and then compare it to other cars.
For cars that I do modify, I try to keep it realistic. Eg with the GT-R, I have done exhaust and ECU mods only, which puts out around 600hp, similar to what tuners are achieving in real life.
When I have enough money to buy the Mclaren F1, though, I probably won't tune it (apart from tyres etc.) because I want to see how fast it is in its original form.
What we need is to be able to drive all cars that we buy in GT mode in Arcade mode, but in their original form, like in GT4.