Yeah, 14 years driving, never have been able to use a wheel and pedals. GT may be great looking and have a damn fine physics engine, but it is still miles away from the real thing.
You should find a way to try GTR or GTR 2 with a decent wheel. It's absolutely astonishing, plus it'll make you retract that "damn fine physics engine" comment.
If you didn't try the GT5 Time Trial, then you probably would think GTR2 is miles ahead. GT5 actually will have a good and difficult physics engine.
Anyway, wheel is far better than a pad no matter what way you spin it. More control on a wheel than a stick. More control with a pedal than a button.