If memory serves, until very recently, most consumer rechargable batteries would basically stop holding charge after 2 or 3 years. Was that better for bigger batteries? I don't know ... but it would suck to have to buy a new car battery every 3 years since the lifespan of most [modern] cars is much longer than that.
As for racing being a harmful distraction: maybe. Depends on the type of racing. I like racing as a driver of what-can-this-technology-possibly-do. Bleeding edge engineering that trickles down to consumer devices. Racing is great for that.
As for the article's claim that electric cars even back then were better than ICE for city driving ... in the city nothing beats a bicycle, a brisk walk, or public transit. Cars were never a good fit for cities.