This.
Short-term, almost everyone gets damage a lot, and everyone's unhappy about it.
Medium-term, fewer people get damage, mainly a small group of ramming asshats who get more damage in more races and a larger group of people they ram getting damage every now and then because they individually meet the rammers less often.
Long-term, the guys who would otherwise keep ramming have learn not to ram, making deliberate contact far, far more rare except for a handful of hardcore ramming fannies.
Nah, people will simply get smarter at driving dirty, just as they do every time PD tries new penalties. The punts will change to pushing you out from the side onto the grass so you can't brake and wreck yourself. Or push you into the pit wall or other obstacles. Gentle bumps from behind that sent you wide won't cause the bumper significant damage. Grinding you into the wall will also cost you a lot more damage than the one leaning on you to make the turn.
So yeah, it will discourage the kamikaze punt. Yet that was discouraged before with penalties and people simply changed their dirty driving tactics to the ones I mentioned above. With race cars even easier, a little brake check, insignificant damage to the brake checker, front spoiler loss to the victim.
Ghosting is not ideal, but better than damage which more often than not turns out worse for the victim. The real solution is much easier. Measure contacts over time driven and sort people on that for races. Those who keep initiating contact will be sorted with like minded individuals. Those who avoid all contact will be sorted with others that can share corners without bumping.
Of course you can still replace ghosting with damage to make it more realistic. But it won't clean up races by itself. Besides that, the races are too short to discourage rammers on damage alone. And some just play to create chaos.
You can't eliminate something if you make it something you can do with zero consequences, and that's exactly what ghosting will achieve. Players will just carry on doing it because they won't face any punishment for doing it...
What it will eliminate is any actual racing or defensive driving, because nobbers can just dive straight through you. There'll be no side-by-side action (everyone can take the same line), no over-under corner defence (everyone can take the same line), no need to plan an overtake several corners ahead (everyone can take the same line), no making the pass difficult by sitting in the centre of the track (everyone can take the same line)... no racing at all. Well done, you just destroyed a racing game by not having any racing in it.
Giving idiots free rein to do whatever they want isn't a solution to idiots doing whatever they want. It's enabling it. To stop them you need to punish them.
Penalties work okay as a punishment, but a sufficiently quick moron can overcome it and continue to ruin lots of people's races all in the same race. Damage is the only thing that will work, because it punishes the drivers who make contact not just once but for the entire race. They can't then go on and ruin other people's races because they have a damaged car and can't catch up to do it.
In the short term, almost everyone will face race-ruining incidents probably about half the time, and yeah, that'll suck... to start with. Over a little more time, the repeat offenders will face race-ruining incidents a lot more often, and everyone else a lot less often because there's far fewer idiots and far more drivers who know to avoid contact. In the long term it becomes a rarity to suffer it at all, except by accident or if a known throbber who just won't learn is in the race.
Except if you give a penalty for needing to be ghosted.
The ghosting works in SR.E, yet there are no consequences to having to be ghosted. The missing step is dissing out a penalty and SR Down for having to be ghosted. If the game deems you to dangerous to continue on as a solid object, you deserve a penalty.
Only one way to find out!
Have they tried damage in daily races? I know they haven't since I've been on GTS. I think its a combo that would help solve it, nothing will fix it.
Even with ghosting, you'll have 16 cars diving into corner 1, because why not. That's not even racing, its just hotlapping with other cars on the track.
There has been damage in FIA races. You get caught in the T1 chaos and your chances of a good race are practically over as you have to pit to repair damage, putting you so far behind you're just racing the one that rammed you for the rest of the race...
So it turns into a lottery instead of a skill race.
(Sorry for the multiple posts, tried multi quote and just ended up with a huge mess)