To add to Old Guy's comments about weight distribution, there's also the concept of 'polar moment.' Think back to high school physics, the ball on a string, centripetal force and inertia.
Now, think about where the battery is: ahead of the front wheels. That battery is a 40 pound ball on the end of a string. Newton's first law of motion says that an object at rest tends to stay at rest and an object in motion tends to stay in motion with the same speed and in the same direction unless acted upon by an unbalanced force.
So, for your 02 vis-a-vis your hood mounted battery, this means: imagine you're driving straight ahead and then you turn the wheel suddenly. The weight of the front of the car resists turning and wants to keep moving in a straight line (ball on a string). Then while you're in the turn, you straighten the wheel in an attempt to go straight ahead. Again, the weight of the front end (transferred to the tires) will resist changing direction. This is Newton's First Law applied. Your turning the wheel is the 'unbalanced force' that is acting upon the character of the car's motion.
The object in the car's handling is to reduce the resistance to changing direction, which is accomplished by balancing the weight to all 4 wheels as close to the center of the car as possible. This is why mid-engine cars handle so well. But we don't have a mid-engine car.
In fact, we have a car with a 40 pound battery as far away from the center of the car as it could possibly be, out in front of the front wheels. This is Bad. Imagine (hypothetically) if we nailed the battery to a end of 12 foot long 2x12 and then screwed that to the nose of the 02. Then, picture what would happen if, travelling at 60 mph, you turned the wheel hard. Assuming the 40 pound battery didn't snap off the 2x12, it would act as a huge pendulum, transferring tremendous resistance (exponential to its 40 lbs, actually) to the wheels to prevent the front end from turning. This resistance is called Polar Moment.
Now imagine that effect on a smaller scale, as it is in your 02. It suggests that getting that lead ballast out of the nose of your car would reduce its polar moment and thus resistance to unbalanced forces acting on it (like turning). Therefore, moving that weight closer to the center of the car, such as over the rear wheels, would improve its handling.
And the chicks dig it, too.
If you're still with me, read Old Guy's post again.