Finally, some confirmation from you and Damien89 that I'm not the only one who's noticed this problem.
I have to disagree with one part of your argument, though, and that's the excuse that "it's a video game, and the streets are mathematically flat." Even if we ignore for a moment the fact that GT4 has some of the best road-bump modelling of any driving sim, the issue still cannot be explained away so simply -- if you steer left or right while spinning your wheels, your car will
continue to travel straight and true. This shows more than a lack of bumps and variations on the road surface -- this shows a lack of understanding of the laws of inertia, as well as the mechanics of differentials and tire traction.
If the only issue was that GT4's roads were flat, high-HP RWD wheelspin/burnouts would behave like they do in Enthusia (which has flat surfaces but more-accurate wheelspin dynamics), allowing your car to travel straight forward if aligned perfectly, but going into a slide or spin as soon as you even
touch the analog stick/wheel.