I never thought of GTAV being a parody. No more than Twinkies are a parody of the USA and diabetus.
Its parody and satire because it takes our worst characteristics, and exaggerates them for effect, basically. Illustrating absurdity by being absurd but in an exaggerated fashion. It takes our tropes and memes and creates an entire surreal mirror copy of our world. Look, for instance, at these GTA 5 political adsI disagree in a way. I think its a parody of how pop culture views Americans through the lens of movies and entertainment. I don't think the average american at all has the views expressed in GTA V. However, if you look at popular movies, video games, then yes, its definitely a parody of that. Or is that what you meant?
Notice how they utilize words and sentiments expressed in real political ads, things like the Sue Murray ad starts "Tiny brained conservative Jock Cranley is at it again!" but they take it to its most extreme point for dramatic effect.
They take a commonly used political ad trope, something I know I've seen a million times (Such and such politician is AT IT AGAIN) and throws in actual slander. Basically saying what politicians would say if they thought they could get away with it in our society.
GTA didn't start veering fully into the parody and satire realm until Vice City, which was a parody of Miami Vice and the 80s. Then San Andreas satirized the early 90s gangwars culture. GTA 4 took itself too seriously, but even it was a parody with Niko's constant bitching and moaning about killing people on the one hand, while simultaneously going out in the streets and massacring cops and civilians by the boatloads.
Elerion: You nailed it buddy. Great post. Getting a plus from me if I haven't plussed you yet.