sometimes it is advisable to stay in the higher gear and lose a few RPM's of peak horsepower and utilize the bulk of the torque curve- not to mention saving 2 shifts. This, however, is dependent on whether or not GT5 accellerates the vehicles using the torque curve instead of hp.
What does torque have to do with it? The power curve and torque curve are equivalent. By using one, you are using the other.
It's just simpler to use power. The whole point of gearing is to maximize your horsepower, and thus your acceleration.
Also, the brakes are the most powerful devices of your car. Use them to slow the car- and downshift only to be in the desired exit gear. You can skip gears from 6th down to 1st at the last second if you're comfortable doing so. Most of us are just used to downshifting through each gear as our muscle memory has developed with the motions through the gate pattern- me included. Shifting from fifth to second just feels weird and I still have work to do rowing through all gears competently.
For years I believed that using the engine/gears to assist the brakes was faster. After reading Speed Secrets by Ross Bentley, I have been shown the error of my uninformed ways. No harm, no foul.
Skipping gears doesn't help [in a real car]. It's best to shift down as soon as you're able to without blowing the engine (which can't happen in GT5, so ironically, it's best to jam down to a low gear and kill your engine so that you're not transmitting any power to the wheels that would fight your brakes).
Makes hardly any difference, put a GT500 car in auto even, move the slider till you are on the redline at your fastest on a track (FUJI for example), record lap time, now go move the slider till your about 50mph over your top speed, lap almost identical?
Same with all this "shift up at peak power", get a car that makes max power way before red line and shift at the "optimal time" now do the same track but don't shift (or put in auto) until redline, same laptime?
Being at redline at the fastest point on the track is not necessarily the best way to go.
Also, the benefit that you see from proper gearing depends on the car's powerband. A car with a perfectly flat power curve does not care what gear you're using. Try messing with the Escudo's gearing, you'll certainly notice a difference.
So in theory it matters

?
Also, next question - will being in the lower gear make the car turn better (again, the difference between 2nd and 3rd gear)?
Yes it does matter. Your selected gear does not have any effect on how tight your car can turn, or how quickly it can change direction, but it does effect how much power can be transmitted through the driven wheels, and it determines how much weight transfer you get from engine braking.
If you want to slow down, you should be in the lowest gear possible, this maximizing engine braking (engine braking can be thought of as how fast your car slows down when you're not pressing the brakes or the gas). So if you come into a corner a little too fast and you need to drop a tiny bit of speed, you could drop down a gear to help tighten the turn. Changing gears is not what tightens the turn, slowing down is.
When exiting the corner, you want maximum acceleration. But your tires can only transmit so much power. Basically, you need to use as close to 100% of your tires' traction as possible. Either do this by modulating the gas pedal, or by shifting up to a gear that does not spin your wheels severely, but is still in the power band.
Yes it will. But whether you want to do this or not depends on the car you're driving. If you're driving something like an Alfa Giula Sprint GTA, or other low-powered, tricky sportscar, you'll want to corner in the lower gear, for more torque and therefore, more control over the rear end in a slide. If you take a 3rd gear corner in 4th you might not be able to control the slide.
If you're driving a RUF Yellowbird there could be too much torque in 3rd. Unless of course you want to initiate a bit of oversteer (which it will do in eagerness,

). 4th will be plenty of torque and no need for worrying about an upshift unbalancing the car on exit.
Just to avoid confusion, "torque" as used above is interchangeable with "power" or "horsepower".