Alright, after having posted this question on a couple of big video game website forums and gotten some good feedback. I've basically come to the personal conclusion that the Grid series is the closest thing to Project Gotham Racing on PlayStation.
The reasons I say Grid is because ...
1. It's a racing game that is really somewhere in between a pure arcade racer and a sim racing game.
2. It has exotic cars just like Project Gotham (although nowhere as near as much as Project Gotham ... but at least they have a few).
3. They both have beautifuly rendered, real world city race tracks.
The Need for Speed games are nice but a lot of them don't really have the real world city tracks and instead, take place in a lot of open world "natural" settings around mountains and stuff like that and the cities they have aren't necessarily real places.
I mean, I was watching a couple of night time city tracks on Grid 2 such as Miami and Paris and I almost thought for a second that I was actually watching a Project Gotham game.
So yeah, to me, the Grid series is the closest thing to Project Gotham Racing on PlayStation; and in between Grid 1 and 2 I'd say Grid 2 definitely has more hot, real-world city tracks to serve as eye candy as you push your car over 100 MPH.
Honorable Mentions:
-Racedriver is a game coming out sometime in 2014 for the PS4 and supposed to be a racer that emphasizes "style" much like Project Gotham Racing did. So we'll have to look out for that one when it comes out.
-Midnight Club definitely takes place in real cities but, as an open world racer, doesn't really have the same feel as a closed track racer such as Project Gotham.
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