Unfortunately, I'm not a developer or modder, so all I can do is post what I'd love to see, and hope someone adds this. Add "Custom AI Route" to AI Options, this would bring up the map's paths, and you can say, draw a line on the roads you want your AI to take. The result is on a map like Hirochi Raceway, the AI won't take an off ramp and end up in a parking lot when I'm racing them, and they'll only drive the way you tell them to. Add "Street-Legal Driving" would be cool as well, as in, the car won't exceed the speed limit of the road, stays on paths, and obeys traffic signals. I know this would be hard to do, but it would be fun to try normal driving in this game as well as reckless driving, also, this option would be a GREAT way to set up realistic crashes between AI in stoplight areas.
I think the idea for roaming AI cars has always been talked about since its of course, a big part about immersion. The issue has always been performance. Welcome to the forums btw.
Sorry for taking a long time to reply (been sick all week :/ but I'm back!) it could just be an option in the AI section where you can just tell however many cars you have set up to do traffic. the result is a good CPU isn't required, but obviously, more power CPU = more cars on the road without lagging. And who said having only 2-3 traffic AI cars is bad? That's still enough to make some realistic crash scenarios.