That clip has finished my GT-orientated evening nicely, awesome stuff!
On one of the rally stages I played the leader kinda spun, then just kept turning, then stopping, then reversing, then stopping, either attempting to do donuts or some kinda 50-point turn. Then when the other AI drivers caught up and hit him, they did the same, it was like a mini game of dodgems using the width of the track only. Then i steamed through, got myself a penalty but won with ease. Saved the replay, not sure I will ever have the time or inclination to upload it anywhere though!
Have had other occasions where one of the cars has got stuck along the way and just kinda gave up, usually the least suited one, once it was an early 80s celica or something.
Actually for all the apparent stoopidness of the AI I did come across a particularly aggressive driver earlier in a B-Spec race who kept going for the back of my Charger Super Bee and eventually put a nice ding on the back corner. It seemed more of a grudge than just usual AI blindness, was weird.