Yup they look pretty terrible. One thing would be not adding the ones with their arm raised up, not very close to track at least. They look quite comical, while the intention is good but for immersion purpose would be just better if their arms were down, since they are not animated. And in general close to track is not a good place. I also think they are quite "bright" colored and stick out like sore thumb, with darker/different coloring they might blend in better.
Issue with spectator graphics become more evident with triple screen, same as in AC. You see to the sides, but you rather not look until the car is moving.
Option to disable spectators completely, or adjust them in 4 separate (Off, low, medium, full) options would be neat. Option that would not affect other track detail. But of course if old tracks don't support this (mod tracks etc) hard to implement it now.