I bought it when it was $10 or $15. I like it, but haven't had the time to play it much.
On the few courses I've run, the cars transform, but there is no need for a Y axis, so it should work fine with a wheel.
I've only played it with an xbox controller, so I don't know if any workarounds are required for a wheel or if it would just work.
Not sure about the new Transformed version, but Antonis, the author of 90's Arcade Racer had a hand in the artwork of the previous one.