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RapidOne :
I have also had similar experiences with my S-10. The 5-speed in my truck is much quicker than my friend's automatic.
However, I don't see too many people racing Passats. Or S-10s.
Since the introduction of any of the LT1 powered Chevys (Vette and Camaro) in the mid 90's, Car and Driver found it impossible to beat the auto with the 6-speed in those cars.
I have seen many 6-speed C5 Corvette's lose to autos in drag racing.
Same for Camaros. Recently, at the local strip, I have seen 2 Pontiac Trans-Ams (LS1), both Ram-Air, both street-legal with valid plates, both appearing normal on the outside, with street tires on stock wheels.
6-speed = 12.56s @ 108
4spd AT = 11.75s @ 113
yes, again, they are 100% street-legal.
These cars are tuned nearly identically, since the 2 drivers are buddies.
Event Horizon (love that movie, btw) :
The game is meant to played with a manual. In PROFESSIONAL (world-class) racing you will not find a single car with a true automatic gearbox. Not one.
The fact that you do not want to make "all those shifts" for 10 laps means that I will beat you every time in YOUR car simply by shifting it myself.
But this is a video game, not real life.
Nowadays, automatic transmissions are good enough to shift faster than a human in nearly every car when pushed to maximum potential. And the torque convertor setup lasts 2-3 times longer than an average clutch and bearings especially when driven hard.