I always feel that although the coaches and wagons do have movement to them. I am not sure the loco i am drving is actually moving especially in external view. Or is it that some are implemented and others not?
That's because the camera is mostly fixed to the body of the locomotive you are driving it. So it won't really move much relative to your camera. It does move just like your coaches, but since the camera moves with it, you won't see it.
Yes, it really gives the impression of actually driving and not just watching the scenery go by. I got fed up with TSC partly because of that, though the AP Class 205 was truly remarkable in this regard.