Solutions
To create a sense of speed, I looked into racing games such as Midnight Club and Forza Horizon to find out the different elements that contribute to a sense of speed. What I found out was that camera lag and audio made the biggest difference. Additional audio other than the engine such as wind blowing, "whooshes" when passing by props and 3D sounds help players gauge the speed and it can be exaggerated easily. Other elements that helped was making sure that there were many props and particles near the players constantly, motion blur, particles effects and narrower or crowded paths. Having props and particles nearby gives the illusion of shorter relative distances, which also means the players past by them faster. The other elements exaggerate this effect.
To combat the lack of networking in the prototype, I focused on other aspects of the game such as the level design and controls. Ensuring that these are all well defined gave me more time to test the mechanics later on when the networking is ready in the custom engine.
I also made playable AI as an alternative using Unreal Engine's behaviour trees so that playtests as close to a multiplayer mode as possible can still be done, albeit faked.
My team may have difficulties with certain technical aspects but I always have backup plans in my designs so if a feature fails to be developed, there can be an alternative. I also trust my team to deliver so I gave more time for them to complete their tasks. This allowed the AI to be developed and instead of designing a complicated AI behaviour, I let go of the AI and focused on the multiplayer aspect, since the networking developer was advancing quite well. I provided the AI developer with a simple behaviour flowchart and forget about having an AI editor in the custom engine. This reduced the AI's technical complexity and lessened the burden on the developer, allowing him to complete the AI without making the AI too simple-minded.
After receiving the feedback from the playtests, I held a meeting with the team to discuss about the issues we have and provided them with various solutions. To combat progression and teamplay, solutions ranged from having unlockable global speeds like Mario Kart's CC tiers to point-based scoring to a limited levelling system similar to a battle pass system. Through the discussion, my team members allowed me to open my eyes to fresh ideas and little changes that improved the gameplay experience overall. These include allowing flag scoring only when there's a flag in base, boat flipping and an in-game levelling system.