Eugh, well. How should it look then? because I can't seem to figure it out. A thing on the horizon shown at a 45 degree angle would look totally wrong.
I think it looks good enough. This "perspective problem" is very common in the kind of games we like/imitate. Why is so noticeable all of a sudden? xD
If anything, something that could help the illusion is to draw the horizon line closer to the middle of the screen, and to make the street more narrow.