There's a few reasons why cop rooms can be bad:
1. Unlimited PP. No one enjoys running away from something that will catch you 100% without fail, and vica versa. The Pace cars also aren't the fastest cars in the game. You can fix this by either changing the pp limit to something pace cars can compete with, if only pace cars can be police cars.
2. Everyone has a different idea when to give up. The "one tap and you have to pull over" thing causes confusion and frustration, its usually the most fun to have multiple police cars try to completely subdue one person.
3. Bad tracks. Mt. Aso tracks can be fun, but they usually aren't. Stick with something real so everyone is familiar with the layout.
4. Mics. The worse quality mic you have, the more you have to yell into it, the worse it sounds. Most children have bad quality mics as well. It's best to just turn them off.
5. The Pace car. it's a pretty rare car to have and not exactly fast even when fully tuned. If you can make it so police cars are a car of a certain color, like black or white, you'll have more competent police.
(PD, we know you love the GTR. Make an R35 Pace Car with better lights.)