I think that yeah that Miata was targeting the guy ahead. It happens. I've experienced it myself on occasion. I think its just a natural thing when you focus in on something you lose track of your peripheral vision. I don't know if this was a very experienced driver or not but I think a more experienced person would have an easier time of relaxing themselves in a race situation so they can stay aware of the entire track.
When your in the middle of a race though sometimes the adrenaline just makes you lose track of everything else.
Glad the drivers are recovering that did look like a brutal crash.
Chris101 is right about the standing yellow. Its kind of a caution something has happened ahead. The waving yellow is more serious.