There is too little smoke, yes too much also, both during gameplay.
I did some burnout testing and amount of smoke does not really change too much if I spin rears 40mph or 70mph, however in burnout contests when they spin near 100mph at best amount of smoke is huge, but if you spin relatively slow amount of smoke is small.
So speed of sliding tire surface against surface might need to have more effect, but is this then tied to temperature of tire and up to what temperature smoke amount ramps up?
There can be quite many variables that affect this, maybe something with tires is not yet finished and is affecting that too or maybe it is not tuned to whole range of situations, but just typical race conditions and lockups, either way it appears that min to max ramp up is happening too soon and max is not quite as much as it could be.
Of course also how fast smoke disappears and how fast it expands is something that affects this, there too is some work to be done naturally as smoke can be quite long time there and it expands bit slower, imo, than what I see in sim currently. Takes time and resources of course to adjust properly and with always limited resources might not be most important on priorities list.
Bit difficult to know which part of this classify as bug and which is how it is intended to be.