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https://steamcommunity.com/sharedfiles/filedetails/?id=1668535147
I used the guide posted above a few months ago, very useful. But in the end most of my settings are some what different, as will most folks.
If that menu, and the input test menu haven't been tried, you have your answer, experiment.
If you already knew it, then yes, mouse and keyboard would be better.
Even at default it's not as bad as you have it. So, not sure, but perhaps the Elite controller doesn't play nice with the in game tuning which is pretty extensive. I use xbox one non elite controller and those settings can totally change just about everything. Xinput is the most popular controller setup software interface, so if your controller is Xinput (I guess it is.) but the results remain as you stated, I would just be guessing why it didn't work.
The game is better with a controller (personal taste) so please check that out if not already done so. Good luck.
I drive racing games constantly and I've never experienced such binary controls. Are the cars supposed to be twitchy and unstable?