The solution to the penalties is to go back to DR.B
That's my DR this weekend, every time I start getting the nonsense penalties again I pit in the last lap of the daily C and sit there not choosing tires to finish last and go back to DR.B. Then I can race again for a couple races without worrying about penalties from people rear ending me.
It's kinda fun, fuel for 9 laps instead of 10, surprise the car pitting in front, then pit at end of lap 9, race done, bye bye penalties.
As for competition, it's pretty much the same at max SR anyway. You won't be getting any wins by dropping from DR A to B, still the same fast unreachable (for me) players up front.