If someone is slower than I am, I make it a point to avoid touching them. Like earlier I was racing Danowat, and he was consistently braking 10 meters too early for my style. Gave him some lovetaps on the first lap, but after that it was anywhere between 5 to 30 cm between us on hard braking. Never touching. We could do that because we were both very consistent in our braking marks and turn in points. I would've regretted it very much if we had touched and crashed because I wasn't in control enough (in the end we wrecked because on SO3, there is no room for error, and the wall is unforgiving, neither of us at fault, just one of them racing deals). Best chase I've had in a loooong time.
However, if I'm behind someone that is consistently slower than I am, being an absolute b**tch about defending his/her spot to the point I'm the only one trying not to crash it seems, there may come a point where I'm less inclined to screw up my front tires trying to miss him/her. If it was a calculated move on the other's side I'd have some respect for it. Like, when I dive down the inside for the 5th time on the brakes for the same turn, you'd think someone would block the inside before I had time to go there and make me take the long way around, but they amazingly only move offline when my nose is already at their rear wheel, making me do all kinds of crazy things to keep them from wrecking themselves. In THOSE cases, I'm not sorry one bit if I spin someone out. There's an art to overtaking, but the same goes for defending your spot.
I think everyone has had these situations where overtaking someone becomes the single most important thing in the world after you've been stuck behind them for 90% of the race. Stuff like this happens in real racing too. They get a good scuffing from the FIA (if you're Schumacher) or a fine (if you're Alonso), or get suspended because you do this stuff all the time (if you're Montoya). The difference between them and us is that we would be hard pressed to kill someone in LFS.
I think (hope) that that's what Flippy is describing.