As long as my car will go around the track at a speed that is not dangerous to others then I will continue to race. I have seen some guys that if they have to go into the pits for repairs will disconnect.
Speaking of blinking cars...I saw 2 guys running together in a race at Texas last week that were blinking terrible...I even had to lift and hit the brakes once because I thought they were going to wreck me. They must have been on the same connection because they would blink at the same time, and once it showed them against the outer wall on 2 wheels and smoke pouring off their tires lol.
I would like to see iRacing a little more strict on connection loss. If I ever have a bad connection I would hope they would remove me before I ruined someone's race. But, if people are telling me that I am blinking really bad then I would park the car until I figured out what was going on. But thats just me.