As someone who has DriveClub and a TV that's at least reasonably alright (W600B) and tuned to give a fairly neutral image, yes, DC does occasionally look as though it's covered in dry paste with noisy artifacts.I think anyone (or majority) who own DriveClub...who have a decent TV...will say the game looks nothing like the image on the left when they play.
The defense force for DC's stark daytime visuals is a little bit hard to take seriously. It doesn't look flat because real life looks flat; it looks flat because it can't handle high-frequency occlusion across its large-scale scenes, and because it (somewhat generally) doesn't express high-frequency high-contrast detail well. These things get emphasized by clean direct lighting with healthy contrasts. For instance, I mostly don't notice the extreme Canada tree LOD, but it's blatantly obvious in direct sunlight; this image was still, but even in motion it's not exactly hard to see:
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