As far as rubber-banding goes, I think Burnout implementation is the best
I get why devs add rubber banding, it fixes the issues of races becoming boring when the player get too far away from the pack, especially in high octane racing games where the core experience is less about perfect racing line, and more about jousting with other cars.
But my main issue with this system, is that the player skill become meaningless, you can play with one hand while doing your taxes, it doesn't matter, just focus for the last kilometre and you'll win.
I think Burnout (at least Takedown, not sure how the rest of the franchise works) has a good middle-ground. AI cars rubber-band like crazy, but ONLY when they are behind you, You simply can't shake them, no matter how good you drive, you will always see them in you rear view windows. But when they get ahead, the rubber banding stops, so they can easily get a 20+ seconds lead if you drive poorly, they won't wait for you.
That means as long as the race is not over, you will never feel safe, but at the same time, you have to play well to win.
Some may find this unfair or frustrating, but let's not pretend playing a single player game is supposed to be a fair competition. In Burnout AI can't use boost, your car seem to weight twice as much as your competitors when you collide, and let's not even talk about the most unfair cheat the player is constantly using without thinking about it : restarting a race. Just imagine for a second if the bots could restart a race the moment they knew they couldn't win.
And as for Burnout, having opponents staying close is also an opportunity for the player, it means you have cars you can crash to farm boost.
So of course it means you can end up in situations where a race can't be won any more. But again, that just means it's time to use your most busted ultimate joker : restarting the race.