I believe that the current overtaking laws in the F1 Sporting Regulations don’t adequately cover overtaking.
The current rules in the official 2011 F1 Sporting Regulations – published on 30.06.2011 on the http://www.fia.com website state this one ruling about overtaking:
20.2 Manoeuvres liable to hinder other drivers, such as more than one change of direction to defend a position, deliberate crowding of a car beyond the edge of the track or any other abnormal change of direction, are not permitted.
Remember Schumi vs Hamilton in Monza, this was the rule that came under fire when Schumi defended Hamilton to the limits.
But strangely enough, despite all the discussions on this forum plus on the race coverage, there are no additional rules about overtaking, even Martin Brundle has tried to explain this as well. So what I find interesting is, why is it anyone gets a penalty at all? Based on which rule does a driver get penalised against when they make a dive underneath another? Or is it purely based on “sporting etiquette”, because in my mind etiquette is different depending on your individual background, experiences and even cultures. Surely there should be a more clearly defined rule about what constitutes a legal overtaking manouvre.