Just knowing that it is in there will torment me every time I lose, I will have to wonder if I lost because I didn't race as good as I could have, or if I lost because the AI cheated. I probably will have little desire to revisit it now as well.
I don't like it when I know the AI cheats in games.
Edit: I guess it depends on how exactly the rubberbanding occurs too. I have less of a problem with the AI getting more things to keep up with the player to allow for more challenge, but if it is infinite and always triggered to keep the player in check, to the point where your skill is always matched by the AI cheating to catch up, then I think that's crap.
And in F-Zero's defense, you can blow up the other racers, so there's some justification to the cheating, which I'm still wondering just how bad it really is.