Pros: great graphics, control, cool features, lots of options, actual cheat codes
Cons: computer opponents get rather cheap sometimes

There are lots of racing games on Dreamcast. Some say too many. Everybody says Sega Rally 2 is the best...and while I do like that game quite a bit, I must say there is one heavily underrated game that should be mentioned. It's Speed Devils! It's not a simulator (I'm really sick of those, and if you are too, you'll love this), and it's better than you may have ever thought.
First I'll mention the graphics. Sure, it's on Dreamcast and the graphics are gonna be top notch, but I was still impressed by the car designs, the tracks and the characters you race against..(although, I wish they would've animated the characters, some of them are really cool...like Vanessa, and Driver X). The way the lights reflect off of the cars is great. The desing of the respective tracks is good too. The New York City stage, for example is really just a bunch of intersections and city streets. The apartment complexes and such look realistic too, like a part of town I've been to before even. There's a lot of detail, they pay so much attention to detail, your cars even get smashed up. In championship mode you actually have to pay to fix them too, with money won from races.
The control is great. It's easy to get used to, driving with the analog joystick.
What I love about this game is the many options. Some racing games just don't have enough options. In this one, you can pick a wide range of cars, and you can pick a color or design for your car too. You can change the weather on the tracks, play them backwards, and race in day or nighttime settings. These options are enhanced even more by the cheat code (oh my god, a Dreamcast game with actual cheat codes?!?!?!?!?!?!?)for more cars and stages. You can play arcade more, where you just pick a place and race, vs. mode, or championship mode. In this you can sell soup up cars, sell them to buy new ones, bet computer opponents, all on our way to meeting Driver X in the championship. it's a really cool feature.
So, if you're into arcade racing, check this out. If you like Need for Speed: high stakes betting feature, check this out, if you like racing in general make sure you check this out. You won't be disappointed.