That debate is still very controversal, I remember this gfx debate on many many titles: simulating eye view versus camera view.
Problem with simulating eye view is that our eyes have different range, and most of all - peak levels, than camera/output devices.
In real life you can look at very bright sky but still see whats going on in shadow, but also you'll be blinded by the sun. You cannot be blinded by camera shot or display. You'll see only white. Cause most of bright places will be peaking and showing as white.
So the different titles use different range and different effects of peaking - some have more white peaking, such as GT5 or iRacing - but even iRacing sometimes looks "too hdr" because of too dark sky vs bright track surfaces and TSO.
titles like Forza have quite nice balance between the peaking levels tho, although they still look a bit "cartoony" - because of that. They look like very post-processed photographs.
So the best way would be combining these ways though, IMO: combining camera output and balanced output. Something like very high-ISO sport cameras with "fast lenses". GT Sport has exactly that look, like sports camera. It still looks quite dark, but it is a bit more balanced than current rF2 shots. It has way less contrast, on the same time the overall brightness level is similar. And obviously, it has variable variations of few stops too.
These are WIP and were still balancing the contrast in bright conditions.
