Thanks for the tip on AIMinPassesPerTick. I have also seen that setting AITorqueStab to .75 is major improvement, because if the AI rear end me, they're the ones that will most likely go off the race track instead of me... Lowering aggression from 33 to 9 was miniscule in comparison.
Edit: After doing a google search most are suggesting AIPasserPerTick be set 0, (no limit?), since today's CPUs are powerful enough.
Maybe now I can adjust the brake power usage closer to default levels.
Edit: In the player file (.plr), I have decided to set the following
AI Brake_Power Usage="0.80000" //
AI Brake_Grip Usage="0.95000" // instead of .97
Brake power usage, makes the AI "more scared/less brave" when it comes to braking, thus encouraging them to brake early. But leaving AI Brake Grip Usage at the default setting, lets them still have powerful brakes, which is actually desirable when human are infront of them, going into a sharp corner. At the end, this lowers the chances of them rear ending you in slow/chicane entry corners. AI agression was at 15%.
Setting AeroMin=7500 (in .dmg), has thus encouraged me to set the ingame damage multiplier to a higher level. The AI indeed were very competitive through out the race, when AI greatly damaged their front aero, usually as a result of running into opponents rear end, their wing detached and they'd go straight to the pits
. Also setting AITorqueStab to .80 rather than .75 is ideal.
I decided to stop my car completely in the middle of Monza's straight-away, and a pack of 5 AI cars managed to avoid me, by changing directions, instead of slowing down heavily, like in GTR2. Honestly, I have to say the AI is very enjoyable after these tweaks. It's not perfect though, they will get a bit aggressive in overtaking a sharp corner.