Because I have seen a lot of corner cutting - in same cases with overtaking - in official races I would suggest to increase the cutting penalty from 5 to 10 seconds.
I have heard after the third cutting the driver will be disqualified. Because of the fact that the cutting technology couldn't work 100% perfect (some unguilty drivers that make only a mistake will be penalisied) I would suggest to get the driver the back flag at the fifth cutting. Then maybe the track builders have more courage to set more and stronger checkpoints.
Or maybe the number of max cuttings can be an adjustable parameter definded by the host.
BR Olaf