Sure, I'll be the guy who says the damage model is broken AF in Sport Mode. Especially when it's very easy to run someone wide into a corner and thus wall, or gently nudge a car off track and again into a wall, or in the case of Sardegna this week squeeze someone into a wall that's right off of the circuit.
You won't get any damage but they'll be crippled for at least 30 seconds.
Contact shouldn't be free but for sure contact shouldn't be race ending.
Look at some real world motorsports:
IMSA/WEC - contact during all different phases of the race between cars, walls, multi-classes, cars continue just fine.
NASCAR - the origin of the punt to pass, "he ain't wrecked you he rubbed you and rubbin, son, is racin'", using the chrome horn to move someone off line
IndyCar - cars routinely touch wheels, wheels touch chassis, wheels touch walls, cars continue on. Not as easily or as often as in IMSA/WEC/NASCAR, but definitely with far less damage than done to my GR.4 when I brush the wall let alone go door to door into a corner
F1 - have seen quite a few touches without damage but I will admit that here the comparison starts to become more apt between IRL and online racing. Most vigorous touches result in one or more cars retiring, but cars can still go wheel to wheel and right up against a wall without being forced to crawl for 30 seconds.
Compare that to what we see in GT7 where brushing the wall can put damage on your entire right side of the car slowing you down and causing you to have to countersteer for 30 seconds (or more for worse damage), or going wheel to wheel into a corner, leaning on each other, and you both come away with fender, side, and sometimes even engine damage.
It's far from realistic and while I understand PD trying to use the damage model to enforce "clean racing" all it really does is give griefers a new weapon to cause chaos as they can take slight damage to shunt you into a wall and your race is over.
I can see that working on open wheel series but in GR.4/GR.3/GR.1 racing? Nah, that stuff happens literally all race long and rarely does anything adverse happen to the car(s) involved.