Indeed - watching someone pull away from you at 2 seconds per sector (long sectors) will cause a lot of crashes as people overstep the mark, in either short races (one lap, myabe two) or endurance races. On shorter tracks people only have 1 second or less per LAP and find it hard to restrain themselves from over driving...
I think the nurburgring would be a great hotlapping tool, and a great comparison of cars to reality, but as an improvement to racing online it'd be mostly a step backwards...
Of course if someone wants to make a good version for LFS when the dev kit is released (if the dev kit allows tracks creation), perhaps copying a good version, say GT4's or Project Gotham 3's but NOT copying a GPL import, then it would be a good thing to do then, but only if the quality per meter is as high or higher than LFS's own tracks.