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The detail we can extract from the software balanced with the much greater tuning range within the hardware is the stand out difference.  This detail in turn gives us the abilitty to tune the weight, feedback, immersion and crucialy the speed at which the hardware communicates to us. 

An Xbox, Playstation or frankly just connecting any steering wheel and pedals to PC is going to give he same result a vague game like driving experience. The ability to tune is what makes a driving game become a simulator.   

There is no getting away from the fact practice makes perfect!  Once we drive our simulator with the same responsibility and focus we drive a real car, then no question the answer is yes, the simulator will make you faster in the real world. 

Driving a simulator like a game and will remain a game. Top line racing drivers are also naturally good in simulators which tells us one simple thing, they apply dispcpline ad understanding to their driving.  

Hardware and therefore tuning detail.  The question of cost relates more to your requirement of use. 

Some companies charge significant sums of money for their simulators and to be brutaly frank the only unique part in these simulators is the cockpit and "reinventing" the pedal design. 

Moving from a good quality entry level simulation hardware to the highest end hardware will not specificaly make most people faster.  It will however, offer more tuning capability and therefore improved immersion. For some of us that makes the simulator easier to understand.

So in short answer the more expensive a simulator gets the more impressive it becomes.

This is a subjective subject and largely depends on the space available and your expectation.

Triple monitors do offer the best immersion because they take up the corner of our vision.  They do not offer any more than this. The sweet spot is between 27" and 32" any larger and we start heading into gaming territory.

If space or simple practicality of ownership is important then a single 49" Super Ultra Wide monitor is the way to go.    

VR is easily the best for pure immersion, however VR creates lots of practical issues that are best discussed.