If a dealership wanted to deny a particular claim because of a modification then yea, they will have to prove that it directly caused the malfunction or contributed to its failure. However that law does not apply if the vehicale has been used in competition. Do you relaly think a dealership should pay for every part that breaks if you raced a Kia down the 1/4mile 400,000 times? (100k mile warranty) Of course not. Now how is that different if it were raced every weekend? Or even once? It's not. The point is competition is hard on the car and more shit will break sooner. I still don't see how the dealer is wrong here. If you pay you gotta play - grow up and take some responsability for your actions.
And no, just because the car is racing in a commercial doesn't mean you have the right to abuse it like that and expect the warranty to cover shit that breaks.

Hell, as I understand it it even tells you in the owner's manual that if you race Mitsu will not pay for shit that breaks.
SilvEclips point 2 and 3, it was probably someone who works at the dealership that was surfing the forums in their spare time who came across the post and recognized the car when it came in. OK, you know that Mitsu will void your warranty when you race, then you post pictures of your car doing -just that- online for everyone to see? That qualifies as a dumbass in my book.
Point 4, if the policy is race and be voided then they wouldn't even have to look at the problem or spend their mechanic's time to try to figure it out. They know you raced, they aren't going to pay, don't let the door hit you in the ass on the way out.