The more you talk, the more you sound like you not only don't race, but have never even watched an autocross. I said autocross, not road race. They are different. Just the fact that you thought having coilovers was special enough to necessitate the use of all caps tells me you are either an internet racer or a total newbie. I think you should go to an autocross sometime. A Neon with a good driver is VERY impressive. In summary,
Stock Neon > Stock Prelude
Built Neon > Built Prelude
Built Prelude > Stock Neon (and you seem to think this is a wonderful accomplishment for some reason)
Neon vs Mustang: I like the Stang better, but the Neon has definite advantages. People will cross-shop.
Also note that I would rather own a Prelude than a Neon, but that is based purely on aesthetics, and Honda quality is among the best in the business. Neon quality is on par with Mustang.