I happen to be one of the drivers who use wheel ON, driver OFF. I always found the driver arms distracting but the wheel is a good for reference for the mouse.
The setup seems fine. I can lap sub 37 laps with it by myself.
As xyx said you could be in a wrong gear. On your set it is 4th gear by yourself, 5th gear with a drafting partner. 6th if you are in a 3 or more draft and carrying a lot of speed.