BUT
This only works if you can properly assign blame for a given collision. That's what really needs to be fixed -- getting sideswiped off the road by another AI driver and then eating a corner cutting penalty on top of that is just awful. They should make it so that if you were hit off the road by someone else, you shouldn't get a off-road/corner penalty. However, this could lead to some weird play in team races (where you intentionally bump a teammate off the road so they can take a shortcut). Who knows.
How do you determine blame though? In an online race, what if I come barrelling down the inside of a corner way too fast just as you turn in, and you hit me? You aren't at fault but you'd get the penalty while I'd get away with it.