" he approached his engine bulider, payed �2k for a "good" engine, payed �150 for his Tryton to be dynoed then, hey presto "
This isn't necessarily the whole story.
There's a driver in a senior class who is capable of very fast laps indeed. He has one a number of races and set several fastest laps. However, he has difficulty getting past a few particular drivers because he isnt confident that he can get past cleanly. (And a pat on the back to him for not attempting the 'dirty' pass. This isn't to say that he avoids the racing opportunity but at least he tries to be realistic).
An engine that would just give him that extra tenth might make a great deal of difference to his positions on the track, just as bumping and barging might do.
In the same way, the lad you describe might be getting the benefit not of a 'Monster' engine but one he can set with reliability, giving him the confidence to make teh move that he sees in front of him.
Indeed, once he has got used to a different perception of what is possible, he might keep his position even on a standard engine.
"just admit it, the man with the most money will be more competative than the average."
But one of the ways the man with most money wins is by spending more time on the track, having equipment which is that tiny bit easier to use, having had the coaching on the racing line and its variations and being able to find a coach who does make a difference, rather than going to one and finding it hasn't made any lasting impression.
All of which is perfectly legal. It is like going to a coach who points out that you brake too late all the time and gets you that half second faster, not because you are going quicker but because you aren't going so slowly in some places. That's an improvement to the racing line and without the money to buy the advice, it can take years to appreciate that slower is faster.
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