edit: A lot of the regulations are also based around making the cars somewhat slower(safer), so they dis-allow massive wings so you can't fly around corners at 200per... And then everyone trys to take advantage at any cost, so they bend the rules to the limit. To the point where it could almost be seen as cheating.
Here is one of my favorites:
I read a really interesting print article a few years ago about one of the big F-1 teams (McLaren?) creating the first carbon fiber transmission housing. This was a HUGE deal at the time because in F-1, the transmissions are structural component of the cars. They bear huge stresses for extended periods of time.
The team spent a couple years and tens of millions of dollars reinventing the way carbon fiber is manufactured. It was all very hush, hush. In the article itself, the picture of the transmission was taken from about 20 feet away, because that's as close as the team would let anyone from the magazine get to it. It looked like the made the camera man stand across the shop from the thing and take his pic with a portrait lens.
The big take away at the end of the article was that they saved 50 lbs or so off the weight of the transmission... but the car was already under weight regulations. So they were adding 50lbs to the lead plate that was already on the bottom of the car so it makes weight. The net benefit of all the money and time spent on the CF transmission was to lower the center of gravity of the car 3/4 of an inch and that was considered a huge advantage until the other teams do likewise.
A carbon fiber transmission, properly constructed would allow for tighter aerodynamic packaging. Adrian Newey (the current Red Bull designer) is famous for making cars fragile and very aerodynamic. Sometimes his tight packaging causes his cars to overheat.
So I'll just have to say in a comment that your comment about DU ballast made me grin :)
Yes most of the regulation changes in the last 20 years have been focused on taking away downforce b/c without constraints the engineers could design cars that would corner with such force the drivers would be on the verge of blacking out.
The other focus is to try and make passing easier. When you depend on downforce for grip and you get right behind another car, in their air wake, your downforce goes down b/c not as much air is going over the wings. Your grip goes down and you can't pass that car.
As far as the front wing is concerned: - the bigger, the more complicated means more downforce thus enabling drivers to go faster in a corner but such wing leads to more dangerous situations, such as puncturing oponent's tires. The bigger wings were introduced in 2009 when many parts of the cars were streamlined in order to improve overtaking and reduce dependency on aerodynamics.
The rear wing: - DRS was introduced 2 years ago. It stands for Drag Reduction System - driver can "open" rear wing to reduce drag (downforce is reduced). Basically means that rear wing is split horizontally into two smaller wings. This system improves top speed so it can be only used on straight lines. The failure of this system can lead to lost of control of the car in non-straight parts of the circuit. The usage of this system is heavily reduced by regulations.
If a front wing comes off it can wedge under the car lifting the front wheels off the ground removing most of the braking effect. Near the end of the straight this could mean 200mph towards the scenary.
Generally there are limits imposed so the cornering speeds don't get too high.