I think they can get away with Formula Fusion, there are many games with Fusion in the title. Some of them were even released in the same year as WipEout Fusion (Metroid Fusion, anyone?)
Also, the internal view in WipEout HD is not very immersive, literally all it does is disorient you. You can now way to judge how wide your ship is, the camera is literally only an inch above the ground, and there is nothing to use as a point of reference. Games like MechWarrior on the otherhand get internal view right, because you can actually see the arms of your mech and the inside of your cockpit. And in Hawken, there is a switch inside your cockpit that you can actually interact with, and it turns your windshield wipers on and off. Now THAT is immersion.
If you want immersion, just pumping more and more money into making Crysis look like Quake is not how you do it, paying attention and care to details (and making it fit seamlessly with the aesthetic) is how you get a good looking game.