They don't crash, but I'd say typically most racers will go will go a bit wide on at least one corner exit in a race (IRL). And typically unless they make a habit of it, there's no penalty at all.
I have no problem dealing with a penalty if it works for the system. You seem to have a problem dealing with any criticism of the system, and just treat any such as if it's coming from a whiner.
Well that's exactly what I'm saying, it's too harsh if it's an instant deduction, since there's a penalty for it anyway even without that.
Most importantly, it unbalances the system. Worst case: get punted from behind, lose SR, end up off track, lose more SR, and possibly get a (badly calculated) time penalty as well. All in one incident. While the punter continues with only one loss of SR.
SR calcs seemed pretty good towards the end of the beta, I don't understand why they reverted it.