Yeah I'm sorry, I'm in the "AI is the worst ever" camp. This is total BS. You can rationalize all you want, but here are the facts: If you're in a real race in a real car at a DEAD STOP on a straight and someone hits you, it's their fault, not yours. If you late-brake into a corner (which is a very effective passing technique that is used ALL THE TIME), the concept is that you are slowing down MORE than the car you are overtaking because you have to make a sharper turn to intercept the racing line, the same racing line that they want to take to continue through the corner. It works because in real racing there are rules, and the rule is that you can't divebomb someone to block their pass at the corner, and because once they overtake you at all, you can't rear-end them just because you're able to take the turn at a higher speed. If you could do those things, then late-braking wouldn't be such a vital tool.
The GT AI is worthless. They will stick to that exact line and plow through anything in their way. If you are in a less-powerful car but out driving them, and using late-braking as a perfectly viable technique to make passes, you're F'ed, because they will maintain speed and hit your back end as you're making the turn. Race over. Pretty awesome when you're in the middle of, I dunno, say, The Dream Car Championship and you have to do the whole thing over.