Personally I'm not sure. If you'd shown me, as a kid playing Colin McRae Rally, DIRT Rally 2.0, I'd have cried for three days straight with happiness. Ditto the F1 series, it gets a lot of stick but is generally a high quality game season after season where the quality of them used to go up and down (remember F1'98?) every year. Just about every top level racing series out there, with Formula E the exception that comes to mind, has a high quality official game. Then you have more niche stuff like ACC, which I see as basically the modern day TOCA - a highly detailed, more niche title - not to mention AC Evo, iRacing, that kind of stuff, with Ian Bell also loudly readying another next year or so.
Then you have the really big players - Gran Turismo, Forza Motorsport, Forza Horizon. This is where it maybe falls down a bit because those games probably don't quite offer the same AAA experience they used to in their earlier days. They're a bit samey now, maybe a bit superseded by the likes of Assetto Corsa in terms of simulation. But ultimately they're still good games and again, of you showed a ten year old me the current Forza Motorsport, my head would have exploded.
There's a definite lack of risk taking and a lot of these games are increasingly very familiar which makes them feel less special with each passing year, but I do think the overall quality and level of choice and coverage of different types of racing have never been so good. Add in the opportunities for such easy online participation which generally weren't there in previous generations unless you had a high end PC, and I think that's been a good thing too.
Arcade racers, though - the likes of Ridge Racer, PGR, WipEout, they've basically died out entirely haven't they which is sad. Unless you're Mario Kart.
