Well they are looking for a driver that can just "drop everything" and make it to the big leagues. If you can make it, than can you really drop everything?
I'd say, from my experience, most people on S2 that I've raced with, including me, get about 1:35 average in a given race at blackwood, while driving the XFG or XRG. It's not too difficult once you get the hang of it. Also, there are more tracks in S2, so there are a wider range of skill levels. All/most of the good people on demo are that fast because blackwood is the only track, so they're sort of specialized.
The Balancing of the two cars is a bit off, however, lowering the performance of the FXO just to balance the two cars, would also not be good either. Making the FXO slower would be out of the option, but also raising the XRTs horse power is a bit unfair too.
This was in another thread some where, suggesting to raise all of the TBO class cars horse power, however, that was rejected almost unanimously, including my vote.
It might not be a bad idea though, because the extra power in the FXO would offset its ease to drive, while also giving it more straight away speed. With the XRT and the RB4, they would also have more straight away speed, however they have a more stable drive train that can support the horse power.
IMO i think it might be the longitudinal grip values. Don't get me wrong, I think LFS have the best physics for the price and entertainment. The problem I see is, the front tires pull the car around the corner a little more than they should. In addition to FWD performance, slightly lowering the peak longitudinal grip would also fix the problem of competitive burnout starts. By that I mean the people that burnout at the start, and still keep up with the people that made a proper tire slip start.
The problem whit threads like these don't really do much for the progression of the sim, they are just conversation pieces for the community, because a person can get many opinions out of the entire population.
IMO the balance of the TBO class is fine the FWD cars are supposed to to be quicker and easier to drive , the only reason RWD cars are used more for racing is because the drive train can support higher horse power. Once a FWD exceeds a certain amount of power, it becomes almost uncontrollable, with all the torque steer, and power under steer.