
At R3 the route is also deleted from the RIP database and then, from routing main table (the route is no more being redistributed from RIP process to the default router routing table)

First conclusion and limitation
We conclude that for a RIP learnt route (using RIP updates) to be advertised downward (in our case from R2 to R3) it has to be in the routing table first. Because the router R2 has a better route to R1 network, the RIP adverstised route fails to enter the routing table and to be advertised to R3 by R2. This is very limiting because a simple static route in R2 is hidding the routes behind (on R1) from R3…

A show ip rip database, debug ip routing and debug ip rip on R3, show that no information about 1.1.1.1/32 R1 route is being received by RIP from R2.
In R2, R1 route is being periodically advertised to R2 and does not do it to the RIP database neither to the default routing table. The fact that a better route (static route) exists in the routing table prevents also this route from being in the RIP database…
Further on
It is now interesting to find out if the route is not being advertised because of default routing table or the RIP database? also is it possible to have a route in RIP database that is not in the default routing table?