In theory you should be able to tree someone off a hand drop, that is how the lady who won Pinks All Out at Norwalk won. She made the guy she was racing look flat dumb just donkey punching him off the line 2 of the 3 races in the final. I really felt bad for the guy to be honest.
To what you are saying, yes you could still break out. I have lost several races by not lifting enough at the end and losing by stupid close margins like .018, I feel your pain.
If you want to win at bracket or index racing you need to run at least .2 under the index and sandbag a bit.
This arm drop stuff just makes it a little more difficult and you really have to know your car, how to drive, and make very quick decsions at the big end.