Fantastic, at least nsx4fun and sjs can understand what I was trying to explain. Being one of the engineering and analytical types it is sometimes a little difficult to put into words what the mind is thinking.
So the whole theory about polar moment of inertia and the benefits of having the mass near the centre of the car do not seem to be explainable by the above theories. It is a great theory if we are discussing which car may be best to do some donuts with or handbrake turns or when you spin off the track whose car will spin faster. Yes, agree.
Unfortunately where it matters is on the limits of adhesion - the old point of static friction as someone else pointed out. In that situation the car is not spinning at all. Merely experiencing a centripetal force as the car turns on an arc.
This can proabably be explained using a simple engineering 'statics' type analysis. Ahhh the old "If body A exerts a force on body B, then body B exerts an equal and opposite force on body A" theory. Lets assume the car is not braking or accelerating hence we will not consider the forces in that plane. Lets only look at the lateral forces that the car would experience.
There are two forces resisting the centripetal force in the opposite direction - an equal and opposite force. This force would be the front wheels and the rear wheels - two forces. The sum of these forces, ie the resultant force, is approximately in the centre of these two points and twice the value (roughly .. although with differnet size tyres, weight distribution etc etc it would vary between the force exerted by the front wheels and rear wheels.) Lets assume that the resultant force acts through the centre of the vehicle.
The other equal and opposite force is the centripetal force of the mass of the vehicle as it changes direction. Quite straightforward ... the force acts through the centre of mass of the vehicle. If the vehicle is say like a 911 this may be slightly towards the rear, whereas if it is front engined the mass may be slightly more inclined to the front - depending on the specifics of the vehicle etc etc.
If the car has an equal weight distribution between the front wheels and rear wheels, regardless of where this mass is distributed, then the centripetal force would act at the midpoint of the front and rear axle. Approximately the same point as the equal and opposite point force exerted by the tires.
The difference between where these two resultant points act in relation to the vehicle may result in a torque applied to the vehicle, ie - force x perpendicular distance to the fulcrum.
Thats about where my theory ends ... but some further points ... for further investigation ...
I wonder if this torque was acting in the right direction, then maybe it could balance out other factors :
i.e. if the car had insufficient front-end grip, then maybe this torque could balance the car back into a more neutral handling vehicle, or even lead to oversteer. Maybe its not due to the excessively hard swaybars or springs, but the distribution of mass within the vehicle. Definately a combintaion of many factors.
Guess at the end of the day it is a combination of the whole package - and two wrongs can make actually make a right. Correction, there probably are no wrongs - it is the whole package?