i do try to defend the corner from people unless i think they have me beat in which case i will give room, racing is no fun if you dont defend
however on public servers when racing against someone you dont have experience of it can really be prudent to give them some extra room until you know if theyre a good racer or some kinda maniac.
id rather give more room instead of turning in without knowing what the guys gonna do cos id rather lose one place rather than crash out