The WipEout games are always seen as the "offical game to the real sport". They're a simulation. Just like an F1-game.
Not everything you see in the game happends in reallife
WOFusion was - imo - the game that gets the best mark in terms of realism; there were rescue-ships picking up the pilots (when the ships blew up, the pilot was still there in a small drone).

Now that the official WOF website is online again, head yourself to http://wipeoutfusion.proactivity.biz/ , enter the flash site, choose "regulations" from the menu and hit "governing rules". You couldn't get more info about how the races are regulated