Ok, so he didn't say it quite like that, but that's the jist of what he meant when he said to French website GameBlog, that the GT code brought to GamesCom "marks only the first step of what we want to achieve for damage".
Yamauchi-san went on to say "were interested to know how far the players want to go". In that sense, reading the reaction of the Internet after GamesCom will probably be a good indication for Kaz and his team.
Presumably Sony want to focus their attentions on Gran Turismo PSP until its release date on October 1st. But with a GT5 release date planned for Q4, 2009 - we're a little bit disappointed to hear Kaz say the words "first step" this late into development.
We'll just have to wait and see.