You dont know much what you are talking about do you.
1. Object instancing is trully a good thing, i will give you that
2. Tessellated Terrain has nothing to do with dynaming shadows or lighting or Ambient ocllusion, Tessalation is height map based change of the mesh done in real-time. So you can make stone wall actually shaped with each stone so long as you adjust height map to that. It is very HW demanding and in Sim racing not very usefull. Tessalation is usually regulated by some sort of settings f.e. in graphics menu or by developers. Usually is only rendered within very short radius from the player, causing very obvious seam of where the radius has reached and where it has not.
If other Sims use multiple baked AOs according to time of day, i dont know, but ISI and rf2 does not. In rF2 Time of Day is always ongoing process and the sun is always on the move, transactions between day and night happen smoothly and without interruptions. The only two parameters needed are Starting time and speed of Suns travel.
3. Yes this is a good thing
4. Not too important in Sim racing, the only Particle effects you will see are smoking tyres, dirt and burning engine. The only case when it could actually be usefully is rain spray
5. This is like DX 7 thing or something, rF2 has that. Take any car, go to practise in night and go around some Omni light, see what it does to shadows. The limitation is how many light sources can cast shadows at once, how many can produce specularity and so on. Those are limitations set by Developerts in sake of performance, but i assume that DX9 is more limited in this than DX11
6. Volumetric Fog is a very good thing, but again not so much for racing sims. rf2 has feature that is called air thickness, which is basically a fog that gets thicker with distance, so the distant mountains have this blueish fogish look to them as in real life. This is a dynamic parameter you can find in rf2s HDR, it changes with weather, time of day and even with location, as every location has a differend default value of this. Loch Drummond has higher air thickess than Silverstone.
DX9 Offers everything that a Racing sim could need. It is down to the graphical engine and shaders how do they calculate the final render. And also down to the graphical assets. The new Indy Car looks fantastic, i find it looking better than AC cars, it is simply more realistically looking car. Most of the modders dont know how to work with colors So they oversaturate them, or over brighten/darken them. Modern game engines do not render the colors the way they are on the texture, they have thresholds of how much saturated the colors can get, this is to prevent ingame oversaturation that is quite common in rf2 with amateur contenct because people simply dont know that when they want this poisonious orange color, they need to tweak it in game, not in their Microsoft painting