I don't play on cruise servers (they are boreing), but from my brief experience with them, the only ones worth driving on is the http://city-driving.co.uk/ ones "[TC] city driving Kyoto" or something. You don't lose money by pitting without parking first. SO much better.
The only thing I would ever want is a proper Top Gear test track. It would be really fun to compare times with the XFG with the actual times from The Stig. Other than that I don't really care for mods.
Yes you are right. AWD cars certainly do eat tyres. This is one of the reasons why I prefer the XRT over the RB4. I feel in much more control with the XRT, it steers a lot more neutral. I find that in LFS You don't have to use as much lock with RWD cars as you do with Front wheel drive cars.
To the OP: Just use RACE_S for now. It's a good setup for learning. You could try some setups from Setupfield http://setupfield.teaminferno.hu/ but they tend to be harder to drive or 'on the edge'. Just don't use 'hard track' that setup sucks! I can get very close to my PB (personal best) with RACE_S, but 'hard track' is much much slower.
Maybe you could post a replay and we can see where you are going wrong. I remember when I first took the XRT for a spin I was totally out of control! Maybe you should drive the XRG for a bit and get the feeling of RWD cars without so much power.
The CTRA servers run high wind so drafting makes a big difference. He could have drafted you when you were running into a head on wind, so he would have got a massive boost because he wasn't fighting the wind like you were.
Flatshifting is definatly faster. Before false starts were possible (ie perfect start every time) I tested this on the drag strip. all the cars were faster, the turbo ones there was a massive difference, but even the non turbo cars were definatly faster.
I'm not sure if the downforce engine works properly when the car is upside down, but in theory you could drive a BF1 upsidedown on the roof with the downforce it creates.
Make us a map that has a tunnel Where we can overtake people on the roof!
2) Well some tracks are easier to drive with a mouse than others. I can do quite good on blackwood (1:08.6) but on Aston club I suck! (1:02.0). This is because on blackwood you only have to be on or off the throttle, but on Aston you have to feather it (not possible with mouse)