Maybe we need standardized blue flag etiquette rules in place. Documented on the first post so everyone knows what is expected of them. It is clear that everyone is not following the same rules when dealing with a blue flag.
From Wikipedia
"A
light blue flag, sometimes with a diagonal yellow, orange, or red stripe, informs a driver that a faster car is approaching and that the driver should move aside to allow one or more faster cars to pass. During a race, this would only be usually shown to a driver who is getting lapped but during practice or qualifying sessions, it could be shown to any driver. In most series, the blue flag is not mandatory—drivers obey it only as a courtesy to their fellow racers. As such, it is often referred to as the
"courtesy flag". In other series, drivers get severely penalized for not yielding or for interfering with the leaders, including getting sent to the pits for the rest of the race. In Formula One, if the driver about to be lapped ignores three waved blue flags in a row, he is required to make a a drive through penalty. The blue flag may also be used to warn a driver that another car on the same lap is going to attempt to overtake them."
There is definitely inconsistencies with how blue flags are being treated, and it's hard to say "this is how it should be done".
Basically I try and operate under the principle of, treat other drivers how I would want to be treated.
If a faster car catches me while we're in a technical section of track (for example, the S bends in sector 1 of Suzuka), I'm going to hold my line. However, as soon as we got to the straight(ish) long left section leading towards the double right, I would go off the driving line and lift to allow them to pass.
If a faster car is catching me on the start finish stretch of Suzuka, and it looks like he/she is going to catch me in the braking zone - I will lift before the braking zone as I'd rather they not try and risk a pass under braking and potentially damage our cars. The blue flag is keeping me aware of the fact that somebody is there.
I will not ever be going slower than racing speed in braking zones - as you just cannot know where that car behind you is going to be. and you can't really take defensive action under braking. This was the case with our accident last night Mully (again not intending to lay blame), you left space inside you for the faster car to pass, but they weren't taking an inside line (that corner in general is weird because some people brake late and take a high line, others take inside), and as such they couldn't stop their car from hitting you because they were already braking and not expecting you to be stopping there.
The best advice I can give is this.
If every slower car was courteous of the faster car and allowed them by, each driver would lose roughly 1-2 seconds in the worst scenarios, and every driver on track is affected by this - so if you lose 1-2 seconds on the driver in front of you because you were passed by a faster car, chances are you'll gain that time back when that same faster car laps the driver in front of you.
If you are going to slow down and or brake to let a faster car by, either do it off the driving line when they are far enough behind - or if you see them getting side by side with you, and a corner is coming up - slow down - there is zero sense trying to race a faster car.