I think you over estimate the amount of public knowledge about the protocol.
That's possible, yes
But there's also a lot of talent, and enthusiasm, we used to have in the rF1 community that has since moved onto rF2 or other games (or, indeed, out of gaming completely). I got the impression there was enough knowhow to fill in at least most of the gaps, and when I heard some leagues or groups had got rejoins working I pretty much assumed this is what they were doing.
Also, really having a proxy in between would double everybody's lag.
Not really, because it's not a physical proxy server - just a program acting as a proxy. 99% of the time it would purely be passing data to/from the game server, so it receives player data through the public interface and sends it on to the game server's assigned data port. The outgoing server data would just go the opposite way.
The only time it would need to 'step in' and actually do something is when it hasn't received data from a player for a set time, in which case it occasionally sends something to the server to say, "hey, I'm player X, I'm still here and my car is... um... sitting next to the track, or near the pitlane, or wherever." One of the difficulties would be how to handle a rejoin; if reporting that the server is in a race session stops the game client from even trying to connect you'd probably have to intercept the server's status reporting so it says it's in practice or whatever would work, then you need to update the client on the fact it's a race session (bearing in mind the server can already tell the client to change sessions; it happens every time the session does change, even if you're in the middle of loading the track when it happens) and then get the client up to speed on the current race status, possibly car condition (tyres and fuel especially), and presumably have them resume from the pits so you don't need to go overboard with placing the car somewhere more specific. You'd probably need a client side plugin to help with all this, too.
This rare activity aside, most of the time the proxy service would just be passing through data with a little bit of checking, so adding very little lag especially in comparison to that already present for remote players.
However, this is all conjecture on my part, I'm not claiming to have the ability to get something like this going, I just thought someone would have. As I said earlier with rF2 having rejoins and providing a better driving experience, even if it still has many annoying bugs or half-baked features (of course rF1 was never fully finished either) I don't think there would be enough push for anyone to bother getting this working in rFactor. Especially if the practice-session based workarounds are good enough to replicate racing conditions.