Inside Sim Racing posted their E3 video today:
http://www.youtube.com/watch?v=QVzhkASVCQ0
Forza content is about 8 minutes in until the end.
These guys are perhaps a bit of PC elitists when it comes to their racing sims. They've never particulary cared for the physics on console games. They came away raving about Forza 3. Not about the looks, the cars, the tracks, or any of that crap the gaming journalist mention without any regard to the physics. These guys say that the physics are vastly improved over Forza 2. And they don't have any problem talking down a game or anything else that they don't particulary care for. For these guys in particular to claim that the physics are far superior to Forza 2's should go a long way to asuaging anyone's concerns over Forza going more "arcade".