I know it sounds elitist, but this is what I'd like (bit long winded though).
Most men like cars and planes and internal combustion engines. Some might pretend not to, but most do. So the natual tendancy is to buy racing games. Therefore people that like cars buy LFS. They may not want a serious race, or to have to think about driving and therefore demand babyish features like Traction Control, or something that makes setups easier. This is bad! Bad for the racing online (as lots of people don't really care), and bad for LFS's image (look at PC Zones inaccurate review).
Now, as I said most men also like planes. Especially jet fighters. There are a number of sims on the market. Some attract lots, and these are generally the more forgiving sims. The ones with arcadey addons. The better sims (X-Plane for example) only tends to attract the more serious flier, and so nice things like Space Shuttle descents are added to attract sales, and well... simply because X-Plane can. If you play a serious flight sim online (IL2, X-Plane) you TEND to meet a more serious, sensible bunch of people, who will fly with you, avoid you, maintain radio contact and not swear. Or wreck.
Because LFS simulates cars and is very good value for money, it attracts more 'monkeys'. Those that don't care, those that want to ruin other peoples enjoyment, and those that only play for a laugh, and don't worry about getting quicker, or causing the odd accident.
So, how to improve the racing. I doubt either will be attractive on this forum, and I am wearing my napalm/bullet/flame/radiation proof suit already.
1. Make LFS more expensive. Price ourselves out of the main consumer market, and only the serious will tend to bother with it. Overall sales will decrease, but it'd sort the men from the boys.
2. Make LFS more 'simulated' Get rid of nearly every arcade/noob add on, and make it as pure as a pure thing on national Pure Day. The fun-runners won't want to bother because the learning curve is too steep. The more serious people will put the effort in, and ultimately be rewarded with the best online experience.
Now, neither solution is perfect imo. But I think LFS is so accessible now that idiots feel they CAN just go for a drive. And it is so cheap that people don't worry about abusing other people (either by wrecking or by gusing someones name derogatorily). As I said I don't expect anyone to agree with me, as no-one ever does. But perhaps it's food for thought for a different approach?