I think its been porven that the reason the racing is so dull is because the cars depend so much on aerodynamics.

It is almost impossible to have two formula one cars racing close together (especailly on high speed circuits) as the car in front causes a hole to be created in the air meaning the car behind has no air pushing on the wings and there for no downforce.

Get rid of the aerodynamic dependancies of the cars and you will have close racing