edit: this came a few posts farther down than i wanted - it took some time for me to type.
waynedaman
lol, that makes some sense. i am having a hard time grasping

why a higher ride height would provide a margin of error to play in, if that is what you meant. i appreciate the input though.
well, if i'm understanding mdnite's theory correctly, then here's my explanation:
get ready for some light-duty and over generalized physics & mechanics
ok, higher ride height = higher center of gravity
makes sense eh? yes
so, for a given lateral force applied to the car, more energy is loaded into the suspension of a vehicle with a high COG (Energy = force x distance ...distance being height the COG is from the road surface here. Energy given in Joules).
More torque is also experienced about some imaginary line on the pavement drawn parallel to the line joining the center of the front and rear axles. This rotational moment is whats responsible for the body roll. (same formula, Torque = force x distance ...units given in N*m)
the more energy you are able to pump into your suspension, the more that will be translated into positive grip. (this is general and depends a lot on the firmness of the suspension). Unfortunately, the time to load and unload the suspension of a tall ride height generally takes longer than a car with less travel. This makes sense intuitively.
A tall ride height can help out the feint technique. By creating a large difference in the amount of grip availalbe to each side of the car, you can destabilize it.
allow me to rephrase: a high ride height is unstable due to the inconsistent grip level from one side of te car to the other under lateral load.
like i said though, the longer period of time it takes to load the suspension will decrease responsiveness. A low ride height allows for a more responsive car, and more evenly distributed lateral loads. (another generality)
i think this is where mdnite's margin of error comes in. A car with a high ride height will tend to be a bit less twitchy, so your inputs can be less refined (to some extent). On the other hand, understanding when to load the suspension, and how long it will stay loaded may take more adjustment.
hope that helps,
and I hope its all correct

- gettin late and been studyin for finals all day.
mdnite, lemme know if i'm way off base from what you meant
btw - w/ regard to everyone saying they like to drop it as low as possible: you better have some incredibly stiff springs and dampers to avoid bottoming out. I'd say keep things at least 5mm above the minimum height. And for every 10mm dropped, increase spring rates by 1.0kgf/mm or so (I really hate the units on spring rates). This isnt some set in stone formula, i just find it helps keep the car balanced from my own observations.
edit: i think this post also answers your latest plea mdnite.
and rally cars need some clearance for the terrain they cover. Notice how on tarmac stages they sit them lower.