I do not have a clue as to what a good arcade racer is. Basically I want something that my 5-1/2 yr old twins and their friends can use in the cockpit I made. They are my target audience. What I can think of off hand would be one that would have all sorts of driver aids (steering, braking, no damage, auto shift, etc). Preferrably one that keeps you at least facing forward or one that when you do spin automatically resets you forward.
Basically something where they could enjoy the feeling of speed and passing some cars without really needing to know too much and not get frustrated by it. Good graphics is a plus as well. Any insight is appreciated, and please my target audience is 5yr olds :-)