Driving simulators are essential tools to guide automotive research and development. Their motion system requires a motion cueing algorithm (MCA) to keep the simulator motion platform within its physical boundaries, while simultaneously aiming to recreate the sensation of real vehicle motion. While traditional, filter-based approaches are still predominant, optimization-based MCAs have been at the center of MCA research for over a decade due to their ability to systematically improve motion cueing quality through explicit cost function design and constraints handling. However, despite their demonstrated advantages, these optimization-based methods have not yet achieved widespread adoption in driving simulation. This paper therefore provides a comprehensive review of optimization-based MCAs for driving simulation, categorizing and comparing algorithms, describing their key developments and core characteristics. The current limited real-time capability, lack of accurate evaluation methods, challenges in cost function design and its tuning, and the current lack of accurate future reference predictions are identified as key barriers to the practical deployment and widespread use of optimization-based MCAs. These theoretical and practical challenges are further reviewed, providing guidelines to advance the theory and application of optimization-based MCAs. Central in these advancements are a better understanding of which motions constitute a realistic motion experience, a framework allowing to compare the achieved motion fidelity of MCAs across papers, the design of the cost function focusing on human motion perception, and techniques for easing up the tuning process to swiftly reach high quality tunings for different simulators, scenarios, and use cases. We identify the need for improving the real-time capability, and providing high quality motion reference predictions using learning-based approaches on diverse datasets, along with techniques to handle existing uncertai... ... Read more