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Well its a sport and a Business. People dont want to watch a sport if the same team is going to win again and again and again with no competition.
Business dictates that you make money if you win and you win if you make money. If you dont win you get out. So poorly funded teams are in a vicious circle of not getting results and so getting less funding and getting worse results.
The only organisations that can aford not to adhere to this business rules are the large conglomerates that get into F1 for their own reasons, ie
Ford for prestige - Got fed up with loosing and bailed
Toyota - To Beat Honda willing to pour maybe $1 billion so far for no return
BAR - To push fags
Renault - to push cleos
Stodard - Odd one out, he did it because he loved the sport but has ended up spending all the money he made by being an airline tycoon, which is a shame, and still sits on the back of the grid.
The cost of competing has ruled out team ownership for sporting purposes but in order for the sport to function it still needs to be considered a sport and not a huge branding excersize. For that it needs fans and casual viewers, for that it needs competition for that it needs the playing field to be leveled off periodically.
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