Before we get very heated up, I'll apologize for my response sounding like an attack. I didn't mean it that way.
A slight misconception on your part, I wasn't quite clear enough. The body of the car moves around more. From the inside of the car, it would look like there was a significant amount of bouncing.
So, in effect it would mean that the shocks are not stiff. Shocks keep the car body stationary when traveling over bumps. With the settings at 1, the car rebounds slower meaning the body bounces around more.
I too believe what other people say, after I test it. I've only played GT3 since August of 2001. However, most of the guys that I listen too have played since GT1.
So we're both in the same boat. I've got reliable, trusted info that says "For Rally, run 10/10". you've got reliable trusted info that says "For Rally, run 1/10". My info also comes from knowledgeable people who race in the real world.
I've done some preliminary testing, and found excessive body roll (which isn't a good thing) with the settings at 1/10. I've found much less body roll at 10/10.
Body roll is a bad thing, as it causes individual tires to be overloaded when transfering weight. In any racing, you want to keep the car's weight evenly distributed on each tire. Even weight distribution is key in eliminating loss of traction. You can take a corner faster when the weight is carried by 4 tires, as opposed to when the weight is carried by just the front tires. When getting on the brakes hard, more weight is transfered to the front tires. When setting your Bound and rebound to higer levels, it slows the weight transfer, leaving more of the cars weight on the rear tires. Thus, allowing traction to be carried by all four tires. To stop a car, you need to generate friction betwen the tires and the road. The higher the friction the faster you stop (hence down force makes you corner better). However, too much pressure (weight) will exceed the friction given by the tires. So...Keeping the weight distributed across all 4 tires, is a good thing.
Now... One last thing to keep in mind, is info that PD didn't model the dirt correctly in the Rally section. That's why I run 10/10 during rally races.
Now when it comes to pavement/Tarmac I don't run 10/10 all the way around. You need more grip at certain points. 5/6 on front 6/7 on back is where I usually start. Increase turn-in, lower the front, raise the rear. Too much turn-in, raise the front, lower the rear.
This is an extreme oversimplification of shock settings on pavement, as Camber/toe and stabilizers play into it more.
I am in no way trying to diswade you form your thinking on suspension tuning, but rather justify why I tune the car with 10/10 for rally racing.
AO