This applies to 0.9.3 and probably to all 0.8.x and 0.9.x versions released to date.

Video demonstrating this :

Karts with a shorter turn radius are probably better for ILs and full-game runs, though in most situations, with proper skidding use, you're not limited by turn radius.

On the other hand, longer turn radius should mean that skids on straights are easier to pull-off. That would make the best setting more situational.