I read the whole thread since it is pretty long and repeating itself any time.
Anyhow, I also agree that AI in GT series is very poor, although GT5P is improved a bit since previous GT's it still way back from other games (mostly PC sims).
If you want to understand what is a poor AI - go into one of the events under GT5P, let all the cars start the race. Now drive slowly into some turn and break at the "line" in that turn (you can also do it in straight line, but in turns it's easier). Now just wait for the AI to go for a full lap until they will get to this point - and just start count the number of cars that hitting & smashing your car....
This is POOR AI.
Now, if you have kind of a modern PC - download the GTR Evolution Demo (free) and do a similar thing (just pick up car+track) - just watch how all the cars breaks differently and go around your car.
This is GOOD AI.
In general - A good AI for me is when I'm watching a reply it is hard to define what is human driver and what is AI driver - the AI should DO mistakes like human (of course it depends on the difficulty level), and shall NOT go to the sand on each race at the same spot. All those who say that AI in GT can also try this in GT5P:
Pick up some event (Sx are good choice for this). Start the event but don't drive your car, just let it move by itself (or drive quickly to the side), let the game do 1-2 laps, then quit and watch the replay - watch the other cars on the replay and look for some place where you see a car sliding on the sand (your car shall NOT be even near...). After you found 1-2 places like this restart the same race again and do the same thing - watch the replay and trail the same car as in the previous replay - now see how it drives the same and slide the same on the sand - a GOOD AI won't drive like this since every lap will be different !!!
P.S. I'm a big fan of GT series and bought PS3 just recently - mostly for GT5.