Does this same logic apply to a staggered set up?
Yeah there is more too it, but yes this is the same logic that leads to "staggered tires (wider in the back) will induce more understeer." Which is a fancy way of saying, the front tires will break loose before the rear in a corner; because the front has less traction becasue the tires are narrower. Plus these cars are set up for understeer from the factory because it is a more "natural" reaction (when going too fast aroud a corner, car wants to go straight . . . instead of swapping ends)