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The problem is obvious yeah, it would be hard to police. But ideally, F1 should be a challenge between the drivers and between the engineers - not a spending war. However I think in questions like these it's important to listen to the proper racing teams, not just the teams that are funded as marketing projects by car manufacturers - even if these teams are the brightest shing stars at the moment. We've seen just how quickly they can pack up and leave when the going gets too tough. One of the reasons they can do that is because F1 is only a side activity for them.
The likes of Sauber or Williams can't simply pull out of F1, because it's just what they do. They will keep racing as long as they can afford to and if they can't, they will either fold or be forced to sell off the team. They are most certainly in for the long run. Their problem is they can't exactly threaten to leave either...