A spool makes the car more positive out of the corners and a bit more stable under braking. It also generates a bit of initial understeer and takes away a bit of mid-corner speed.
They also place very heavy loads on the front drivetrain and are unforgiving of crashes - you will break stuff a lot more easily than with a diff.
They are good on medium-to-large tracks in medium-to-high grip. I prefer a tight diff on small tracks and low grip conditions, but I know a lot of people that run a spool in those conditions as well.
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