If you want the confirmation just watch the F1 2012 "Improvements" Dev Diary. They spend 1/3rd of the "Improvements" video talking about the menus. It's like they don't even care anymore.
I wouldn't agree with this.
Current state of their F1 engine is phenomenal. It is engine I would like to see in some new theoretical "TOCA" game because it allows for almost flawless execution of actual race in any class (regarding tarmac races) and no other game at this point on consoles have it all in one working package.
From my head:
- 23 AI cars
- Safety Car as 24th AI vehicle on-track with fully programmed routines
- 12 different liveries/car models on track
- animated suspensions/drivers/vehicles (DRS wing for example)
- animated pits/pre-race/post-race sequences
- vehicle damage model with animated pit-repairs and AI-repair in-race routines
- tyre puncture routine/mechanical damage routines
- full-fledged real-time weather engine with animated visual surface properties (racing line on wet/drying process especially)
- progressive changes of grip track surfaces for dry/wet weather
- F1 2012 introduces real-time skyboxes/clouds and variable lighting (day/night is clearly possible with YasMarina as example while Singapore looks stunning at night)
- AI routines for KERS/DRS
- AI routines for special situations (damages/punctures/safety car deployment/qualification..)
- in-race technician audio
- real-time race-objective management (tyre changes/number of laps driven/in-race situation for AI drivers)
- race penalties and routines for mandatory pit-stops etc.
- all above 100% executable in online multiplayer
- possibility to run online co-op championship via online
- multiplayer modes with matchmaking and custom races (including online championship)
- decent FFB 900-wheel support
- stunning audio (it is stunning, despite it would benefit for some more spatial-sound in 5.1 but maybe F1 2012 do the final "touch" regarding proper levels for surround speakers)
- etc.
Now imagine all of the above introduced is some full-fledged "TOCA-like" game. It would be a dream title.
Codemasters clearly have both knowledge and technology to release a stunning racing title. They should just stop listening to focus-groups and mantras regarding "serious racing games are dead" and be brave enough to bite that bullet.