A 3 strike system would be great. Instead of penalties, 3 strikes and you are out of the race and blocked from sport/online mode for 3 hours.
I would be banned nearly every race... yet my SR remains at 99. A Sarthe race already starts with a 919 hitting me twice form behind as they can't handle their acceleration. Then another bump is easy to happen with people draft bumping and careless braking.
We wouldn't need such a system or DQs as we have now if the game could detect fault correctly. Any tweak on the current system will penalize as many clean drivers as dirty who know how to game the system. The trolls will get different accounts to rotate through and still cause damage.
To fix the current mess PD needs to figure out the difference between a dirty block / brake check and late braking / draft bumping. It's really not that hard to figure out.
If the lead car suddenly swerves last moment into the trailing cars path right before contact, lead car is reactionary blocking. Defending is allowed yet you have to do that when the trailing car still has time to react. If the lead car brakes or slows down on a straight before the braking zone, it's the lead cars fault, with the exception when the lead car is braking for another car. The game can see all cars, it should know when you are slowing for something.
In the braking zone, it's the trailing cars fault, as well as in the corner and at corner exit if the leading car is accelerating and not stalling. Unless again when there is traffic in front. The game needs to look at more than the 2 cars making contact, just as people on the track need to be aware of traffic ahead.
Pushing / bumping cars right on the edge of the road, fault lies to the car more to the middle of the road. Give each other space, simple.
That will already solve a lot of incorrect penalties and stop the exploit of tapping a car, then a wall to give them a penalty. Draft tap a car, get a penalty yourself. Or allow draft bumping with no penalties issued as long as the lead car stays on and not bumped wide. Yet eliminate the current penalty for the lead car for getting a draft bump.
Since lobbies now often have mixed SR the game can't rely on different SR deductions anymore to keep people in certain SR ranges. Currently you get less SR deducted in lower SR so you kind of gravitate to a certain range depending on your number of contacts per race. However this drags clean drivers down that get heavy SR deductions for any contact. When a lower SR driver hits a higher one, the lower rules should apply to both.
The game needs to look at your SR history as well. Get down a lot, make it harder to gain SR. Any race where you lose SR, reduce the amount of SR you can gain in the next race. Any race where you gain SR, increase the amount you can gain in the next race. Or for example, get a penalty in a race, reduce any gain by 10%, cumulative for every race with a penalty. Reduce the multiplier for every penalty free race. End the red dot disease!
Last but not least, End the wall penalties, -5 SR instead for any wall bumps or going wide off track (and losing time). SR should also stand for safety rating. When you can't stay on the track you are not safe and will cause accidents in traffic. A penalty doesn't help, keep those for short cuts (and gaining time going wide), not for going in the sand or bumping walls. Yet off track, -5 SR. Of course sometimes you have to go off track to avoid a ghosted car or bad track re-entry. The game can see this whether you are over driving or avoiding a car going much slower than they should be / coming from off road. The SR Down should go to the car re-entering the road in an unsafe manner.
Less penalties means fewer accidents from people trying to scrub penalties in a race. Yet getting a penalty should make it harder to gain SR with a cumulative multiplier. Can't race penalty free or without touching walls, you don't belong in SR.S.