The quality of racing wasn't necessarilly better, just flat-out more exciting. If you've ever watched real racing, the outbraking maneuver is one of the best passing techniques there is. The same is true for RC Cars. While there could have been some real great racing, and pretty passes, you just couldn't get the same excitement as you could with dual diffs.
On a side note, Ling. I'll be there early with a spot for you...
UF1 Team Lotus/Renault
R Sector / F1 Paint Labs