RE: NASCAR, F1, etcetera... FWD won't work in those formats... since they're basically "spec" races... F1 is very strict about it... RWD, no turbos, exactly the same displacement, the same ECU... running on the same gas... there was a time when F1 was quite adventurous... all wheel drive, six wheelers, turbine cars, boxer engines... 1500 hp turbocharged four cylinders... nowadays, it's basically a spec race where everyone spends millions of dollars to make their cars faster and faster every year... despite the horsepower and aerodynamic restrictions.
Front-wheel drivers
were used in the past in Indy-racing... and were not just competitive... but winners... look up the Miller cars (those were amazing machines)... the economical packaging of the front-drive layout, the low drivetrain losses and the aerodynamics made them good oval racers.
It's only when the lack of traction became a really big issue due to higher power outputs that FWD became really uncompetitive... then because AWD was kicking ass that restrictions were brought in that basically made all high-spec racing RWD only.
Some racing teams and efforts, though, persevered... and prevailed... note the unbelievable story of the Pikes-Peak winning Toronado... and the success of JWRC and FWD in (admittedly, rule-balanced) touring car formats.
(gads, it's almost impossible to find any info on racing Toronados online! I've been looking for hourse for a link to an article I read in print before, but I give up!)
With new tires, new differential technology and better suspension design, we're entering a new era of FWD performance... Tire wear is an issue, but this is an issue facing anyone who owns a RWD supercar... ever try to find rear tires for a Corvette? Prices are insane! And a few drag runs will scrub them clean off...
Look up the VW Golf GTi R. It's a 400 hp front-driver that can hit 60 in under 5 seconds. Tire wear? Just do what the big rear drivers do... get wider tires... it's got 265mm tires, all around, under wider fenders. How hard to drive? It goes down a race track fast... really fast.
Any car with 400-500 hp will have handling problems unless you design for them... terminal oversteer, terminal understeer, poor power delivery... (even with AWD, unless you have wide enough tires and good differentials) etcetera.
And with today's active differentials, or even with a simple LSD, you can dial out much of the understeer inherent in FWD. True, you'll never get power oversteer... but that's never the fastest way around the race track, anyway.