It's a perception thing.
The car width is roughly the same as the screen, so you can be far more precise with steering. You also have a sense where you are exactly putting the wheels, that you don't have using Dash or Bumper views.
Also, being on a level closer to the ground, you can be more accurate on the braking points than with the higher, tilted chase view.
Realised that on GT4, being using hood view since than because of that. Not a new thing or a hidden driving aid on this view.
Bummed because they took away the rear view mirror on this view on GT7, BTW.