Think of it like this: You're driving 100 miles per hour and a sign post is up ahead. If the sign is appearing 20 times per second, there are tiny gaps of time between each appearance of the sign as you approach it. Therefore your brain sees this sign...and then all the sudden it is much closer than it was because the PS1 can't fill in as well as teh PS2. Your eye may not be able to tell the difference but your brain can. The sign is 20 millimeters tall on your screen when it first pops up...now it's 25 mm...now it's 29 mm...and so on. It appears to grow in size as you approach and you get the feeling of travelling at a faster speed.
In contrast, with a smoother framerate (60 fps), your brain can't pick up any gaps between the sign as it approaches...you always see it as it approaches without any apparent distortion. The sign is 20 millimeters tall on your screen...now it's 21 mm. NOw it's 23 mm..and so on. The appearance of the sign as you approach it is so smooth, it gives the feeling of travelling at a slower rate (in comparison to PS1 racing games).
It's hard to explain this...where's a physics teacher when you need one?
It's something GT2 has that no other GT offers (the view change thing). You can also make the camera angle looser or tighter so that as you race, you'll sometimes see the side of your car if you turn too hard or spin (that's with the looser setting).
