Terms like " pre baked cake fakery" give the impression that you’re trying to knock FM/T10 and blow smoke up PC/SM for the sake of it. In fact going back to post #66 FM and AC both look a lot more realistic than PC and GT. PC shows block shadowing with defined edges like there’s an office block trackside rather than a stand of trees.
Anyway, in a practical sense there appears to be so little graphical difference regardless of how environments are generated. I’m sure that using T10s favoured technique any time of day or night could be created. The limiting factor would be races that were long enough to experience changing light conditions such as dawn or dusk. Rain shouldn’t be prohibitively difficult using this technique either - shadows are much reduced and would in some cases need to be replaced by some degree of surface reflection but a lot could still be “pre baked” (to coin an unfortunate phrase). At the end of the day the XB is what it is. Not the most powerful hardware on the planet but good enough to run a darn good game if it’s well coded and takes advantage of any techniques that remove overhead with little or no detriment to visuals.