MOMO Racing Force Feedback Wheel power unit

The answer to your question really depends on a number of factors:

• Do you approach it as a "game" or a "sim"? I.e. what level of realism do you want? For a realistic experience, you just can't beat a wheel and pedals.
• What kind of controller do you use? A cheap plastic wheel with bungie cord springs isn't going to give you the same level of enjoyment and realism as a high-quality wheel. However, you can pay a lot of money for dedicated controllers that will end up seeing relatively little use.
• Does the game support multiple analog inputs, and/or allow you to map the inputs according to your play style? Regardless of controller, in many games it is important to be able to feather the throttle, etc. I really hate the games that only give you a couple of preset controller mappings, since they almost never match what I want.

For myself, I have used the following:

• Joystick
• Home-built wheel/pedals (can't use it anymore because my computer no longer has a game port)
• Act Labs Force RS wheel/pedals/shifter (with "pro" pedals)
• Multiple gamepads and console controllers

Of these, I still use the Act Labs whenever I want to do "serious" racing but the gamepad is sufficient for arcade racers. I've played all the way through NFS: Underground with the wheel and a gamepad, and wouldn't say it was significantly better one way or the other.

Background/disclaimer: for a number of years I was deeply involved in the racing simulation scene, including an extended stint as the webmaster of Sim Racing Connection where I also maintained the track/addon lists for GPL, DTR and SCGT. I've played just about every racing sim/game ever made, all the way from Grand Prix Legends to Mario Kart. :)

Having done a lot of driving various racing games with a wheel and pedals, I'd say "it depends".

Pro:

• The game can give you experience in scenarios that are rare in real life, but where a split-second decision can mean the difference between walking or driving away - or worse. For example, Grand Prix Legends gave me experience and confidence that I could then apply to winter driving. The "natural" reaction in a skid or slide is to hit the brakes, which only makes things worse. Instead, a gentle counter-steer and judicious use of the throttle (and maybe a touch of trail-braking - but just dragging the pads, not stomping on it!) will keep you on the arc of the corner and in control of the vehicle. (See "four-wheel drift")
• In general, the games will teach you to anticipate and "look ahead" for trouble. A common problem with most real-life drivers is that they only look at the car in front of them. Instead, you should be looking as much as 1/4 to 1/2 mile down the road - through the car in front of you. This is especially crucial at higher speeds.

Con:

• Things will normally happen a lot faster and with greater intensity in the game than in real life. The problem comes when you start to crave or seek that intensity.
• Related to the previous point, in most games the goal is to drive as fast as you can and there are no significant consequences for the minute mistakes that such speed is bound to produce. In real life the consequences are much more dire and there's no "Restart" option.

I'd say that, if you find yourself starting down the path toward problems - driving aggressively, regularly exceeding the speed limit, etc., you need to take a careful look at yourself. In my personal opinion, racing games have made me a better driver. But then, I don't text or talk on the phone (except with a hands-free setup), drive at excessive speeds, etc. The influence of the games has been on my observation and anticipation of trouble ahead, and knowing with some degree of confidence how to handle that trouble.