That looks like buffed PS2 graphics (blur everywhere and piss filter, so typical for Codemasters). Real racing simulators have cockpit view and you are driving on real racing tracks, there are no waterfalls, urban city areas (unless it's formula sim).
Typical NFS games (Undercover, ProStreet), Burnout, TDU, Dirt series and similar
aren't racing simulators at all. They are just games where you drive cars with imaginary physics.
TOCA Race Driver series (which includes both Grid and Grid 2), NFS Shift 1/2, pCARS, Forza, Colin McRea Rally Rally, Formula 1 games are arcade racing sims, if such thing exists.
GTR 1/2, GTR Legends, Live4Speed, netKar Pro, Live For Speed, rFactor, Gran Turismo, iRacing and
Asseto Corsa are racing simulators. Last mentioned game has best feeling, apart from iRacing which is industry standard.
Saying that Grid 2 is great racing simulator is the same as saying how Battlefield 3 is realistic military sim. It's a fun game (for those who don't enjoy simulators) but that's it.