1) FFB itself is better than R3E that I have tried this weekend and on par with best cars in PCars properly tuned using Jack Spade latest profile and matched Vol/Tune. Except in FM7 you don't need to fiddle with individual cars, they all pretty much normalized across the board and all that I've tried so far feels pretty good, with probably the exception of Ford Crown Victoria in Bowling event but that could be just understeering nature of the car itself.
2) Physics and how it's translated through the wheel is surprisingly believable. Turned off all assists, switched Steering to Simulation mode and it can easily surpass PCars2, and doesn't feel completely out of place even coming from AC.
EDIT: Disclaimer. I have never tried FM7 with native FFB API, my wheel just doesn't have FFB with it. So all these impressions are related to EmuWheel implementation. From my exchange with creator, a lot of even supported wheel owners using EmuWheel due to better FFB delivery.