I wouldn't go that far. They're updating the game and they tweak the physics. That's not the same. Updating the engine itself is badly needed at this point, and I'm sure they are very much aware of the fact themselves, not just because people bring it up constantly, but also because they're severely limited in what they can do and have to resort to various workarounds. The game is frequently stretched to its limits, especially given that it can't really take advantage of modern systems. It's antiquated at this point, and the fact that it still offers as much as it does, looks as good as it does and offers the features it does is a testament to how good they are at making things work within the restrains they got.
There have been many tweaks and features/optimizations, but at its core, Raceroom is still a decade old game. It's not Raceroom 2 by any means.
Then again, it's hard to imagine where they could go next, especially since the originally talked about Unreal Engine seems like...not a great choice for racing games.
This is honestly the only reason I'm even mildly interested in GTR3 (besides laughing at the sheer unprofessionalism of it all) - what does it all mean for Raceroom, given that the original plan seemed to be to update Raceroom once GTR3 is done. That is unlikely to happen any time soon, if at all, so...what's next for Raceroom?