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This block diagram is very interesting to see finally. AES was first used in GT6 when the Red Bull Junior was added in an update. It was possible then to infer what the numbers in the presets did, broadly. But it was impossible to tell in what order which filter was applied etc. The crossover is very important, and I'd figured it was to do with the end reflection, but this makes it clear.
If this is the current model, it appears unchanged from GT Sport. The only addition Sport had over GT6 is the extra resonator filter at the termination. Flow noise generators had been used at least as early as GT5 Prologue!
In GT7, you're most likely to hear the AES system with a racing exhaust. It doesn't have the nuance to reproduce all the ancillary noise and so on, which is very prominent on street legal machinery. So the samples are used instead.
One thing that hasn't changed much is the way intake sounds are treated. Early on, very infamously, they weren't captured at all due to the cars not being driven, only revved when recorded. Now they are mixed in with other sources and don't really change much with upgrades or throttle position. Exhaust is still king with PD.
AES is capable of generating intake sounds, quite convincingly. Although it's still only easy to tune for full racing type sounds, and really only for NA engines.
The flexibility of the direct synthesis holds great potential for reflecting changes in tuning and parts, but making sounds for all the cars is difficult as it is!