I think this section is more "true" and possibly one of the largest factor in play. The other being AWD that unless I mamistaken, he mostly ignores. Both have similar "fixing" properties for mistakes.
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I believe power can make up for a portion of driver imperfections. If the driver of a powerful car scrubs off a little more speed in a turn than he should have, he can quickly make up some of it. If he pinches a turn in too close, then he can simply give more throttle than he would have been able to were he drifting to the outside of the course. If the driver of a puny car makes the same mistakes, they are not as quickly compensated for and therefore have a greater impact on run time. I believe one learns throttle modulation easier than one learns the precision needed to enter every turn at the best speed, maintain that speed through smooth movement of the steering wheel, choose the perfect line every time and air-kiss every apex and slalom cone.
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In fact, there is one more contributor, Street Tires... Street tires are much easier for the novice or anyone for that matter to drive near the limit than race tires. The failure characteristics are much more predictable, and they provide significantly more feedback to the driver than race tires.
These three things are probably the larger contributors than altitude IMHO.