I find the physics and handling to be below average. Even after adjusting all settings for G27, it is neither engaging or entertaining to drive. The FFB is even worse. It's spotty at best, non existent at worst.
I think the FFB and the tire physics are the problem. Even with optimal settings, there's a FFB deadzone in the center of the wheel, you have to turn the wheel a bit before you get any real resistance. It's not the only game with that problem.
A way to combat that is to increase the steering damping but I sometimes don't like that over dampened feel, if you try it, make sure to turn the speed sensitivity all the way down.
The physics on the rally races are actually very good/fun. On the road though, the tires are the problem. The cars have weight transfer, the react to your input and bumps the way they should, you can easily distinguish the cars by drivetrain and furthermore the cars all feel unique and similar to how they're known to feel in real life in some cases.
However, the tire physics are not good. It's a problem many games suffer including even rfactor and GTR2 (but obviously to a lesser extent), but there's almost nothing between having maximum grip and no grip at all. There's no transition, and if you've ever slid around in a car in real life, you would know there's a huge transition even at high speeds.
In TDU2, it's only much more pronounced than most games. It's easy to compensate for but it requires unrealistic amounts of throttle control, and with an R2 trigger, that's not easy. It's very unforgiving. With a wheel it's fine, but when cars slide, they're unaturally hard to correct due to the poor tire physics.
For the controller people, it would so much better if you could map throttle/brake to the right analog, that would give you SO much more control over it but alas, you can't map anything.
It's sad because the physics in TDU 1 were really something to behold for an arcade games. I mean really, driving the lotus elise around made that game seemed like it bordered on simulation, they got the lift off oversteer perfect and it just felt right.
If they ever make TDU 3, they should go back to TDU 1s physics and keep the same number of events from it as well. Im still not even at 30% in TDU 1 on PC or PSP but Ive beat TDU 2 twice.
TDU 2 looks great, and has some cool new features but I think TDU 1 is the ultimate arcade racing game and nothing can compare at all