I agree on the flashbacks. Offline yes, online no. As said it's killing the racing experience and on top of that it cheating. They shoudn't have been invented in the first place!
If you are going to build a "relationship" with a car or a team you will be carefull with the stuff you drive. You will maintain it properly and you will race it accordingly. Flashbacks just ruin the racing experience in general. Making mistakes is part of life so it is in playing a game. You don't get a "rewind" feature in a FPS.