I don't thin that it work with USB, just the IEEE 1394 (fire wire / I-link cable). With just 2 players, you don't need a hub, just one wire directly connecting the two. For more than two, you need the hub, and I assume it works very well.
As for how well it plays? It's great. I like the 2 player split screen a little more though, as I prefer to race with garage cars, and not just arcade ones.