I think it'd be neat to see Kitt start off a race... even if he didn't go out everytime there was a caution.
Now, I've never seen a race live, but I do know how big those cars are. Does the Pontiac Grand Prix, that paces the races now, look any better or worse compared to those cars? To me there is no right or wrong car. Each year they change the pace cars, perhaps next year they'll choose a Ford ( ;p ).
In reality the Grand Prix is no bigger than my Grand Am. And when I compare my '82 Trans Am against my '01 Grand Am I don't see that much difference. Sure technology has changed and the shapes certainly aren't the same, but the length is very close to the same. In fact my Grand Am is about an inch or two shorter than my TA. Roof height is lower on my TA because the entire car was designed to be lower to the ground, but when it comes to clearance under the car my TA wins out being about 1" higher. Funny how it works sometimes.
Would Kitt look good out there? That's a matter of opinion. What would the fans think? That's a guessing game, but I'm sure there are a lot of people out there that would recognize Kitt for the icon he was at the time.