The 04 was not strict realism ala GTR2 or rFactor either, as most Rally games aren't to be honsest.. but it was a fun drive, mostly because the tracks where awesome.
I fully expect 05 to be the same sort of deal, [...]
I'm not saying that it wasn't a strict simulation! I'm saying that the cars felt like hovercrafts! It has
nothing to do with how a car behaves.
As an example, just so you know how bad it is, Rally Sport Challenge 2 in all its fast-paced arcadey glory feels more realistic than CMR 05. See, I don't mind arcadey games. I'm not a fanatic who discards a game because its tire heat simulation wasn't perfect or something. I LOVED Rallysport Challenge 2. But CMR 05 isn't "not complete simulation unrealistic" or "arcadey but fun unrealistic" but its "what is this supposed to be unrealistic".
CMR 05's friction system could work in a sci-fi racer, possibly with the addition of weapons and it could turn out to be an awesome game, but as a semi-realistic rallye game it fails horribly.
I don't know if nostalgia is clouding my mind but I seem to remember that CMR 3 felt much more realistic.
As for racing games, I would probably try to get one of the Burnouts if I were you. I have played Burnout 3 and Burnout: Revenge and both were awesome games so if the psp ones are anything like them they should be great fun.
There is also a ridge racer which is just as arcadey but without the destruction. Might still be fun.
I have seen that there is a Tekken for it. Tekken is a renowned fighting game series but I have never played one so I can't tell you if its any good. However the screenshots looked impressive and it might be worth a try. Especially if you have been exposed to earlier titles in the series amd you know (and like) what to expect.