I think you are exaggerating the downside of no respawns. Im talking about the waiting time. A race is over pretty quickly so having to wait is not a problem i.m.o.

The first time I was killed and respawned I thought I was just going to be able to have som fun as a ghost until the next race started. But some corners later I realized I was still in the race hehe. That could be a solution for the waiting "problem".

I think respawns should be turned off by default, but also having the option to turn it on would be best.

If this cant be achieved, please have a bigger penalty for being eliminated. 30% energy is ok, but respawn time should be longer. Or wait, that is even if you get the option to turn it off completely.