Also, the LCP iterator is pretty much usless for simulations anyway, so im not sure what applications JOODE or even ODE has outside of gaming...
ODE is very popular for robotics researches wanting a cheap simulation environment. At the end of the day a high fidelity system is not going to come close to capuring a real world environment. There are too many parameters for anyone to configure (I mostly talking about surface parameters). The major opinion is that a robot shown to work in simulation won't show that it works in real life, no matter how accurate the simulation environment is. So why bother trying. ODE and JOODE basically captures the really important stuff, joints swing about like they should do, masses have momentum etc.
Nick Jakobi suggests that to increase the chances a controllor for a robot developed in smimulation will transfer to real life involes injecting huge amounts of noise into the simulation, thus kind of negating much of the gains in a high fidelity system, see:
"Evolutionary Robotics and the Radical Envelope-of-Noise Hypothesis" Nick Jakobi