As I'm fairly new to the game I don't really know how the system used to work but I can say with hand on heart that the current penalty system is a potential Sport Mode breaker, let alone a game breaker, for me anyway.
Inexperienced as I am I went for Race A yesterday (R33 at Tokyo). Did a few qualifying laps and started 4th and 5th respectively.
In both races someone at the back of the field didn't brake for T1 and I don't mean they were late on the brakes, they didn't brake at all. Both times cars were flying all over the place and surely enough; both times I received a penalty, 4 and 10 seconds respectively, and lost SR points. I drop down to the back end of the field where I fin myself surrounded by people braking for flat turns and consequently drifting through the corners, wildly out of control, resulting in me having to slow down to avoid hitting them and getting rammed from the back. Here, have another 10 seconds of penalty. 11 seconds, 12 seconds, 13seconds...
On to Big Willow and Gr.4. I'm in the 4C. Started 6th and made my way up to 3rd due to people running off. I pit on lap 7 and notice that the Italian behind me in the GT86 has more fuel than me and despite coming in 2-3 seconds behind me he get out right in front of me. It becomes clear that I have the pace on him and despite his best efforts to defend I manage to overtake him cleanly and get back to 3rd. He didn't like that and on lap 11 of 12 he dives down the inside on the final turn and bumps me off, resulting in me pitting a second time. I cancel tires and fuel and rejoin 5th where I finish. He gets penalized for his move but still finish 3rd.
I get no penalty, except the stop and go penalty from the Italian.
I've held an SR rating of S/99 since day 2 of playing but ever since 1.15 I've dropped like a stone. It seems every time I manage to claw my way back to SR A I get matched with the worst of the worst. It's a vicious circle.
It's the same scenario in every race I enter now; qualify 5th or 6th, get caught up in the typical T1 chaos negating any clean racing or good sportsmanship I conduct, leaving me with a sense of futility towards getting back to SR S/99. I guess I have to sacrifice some DR points or learn which races to avoid like the veterans seem to do.
It's all very demotivating.