All(I think) cars have rev limiters. When you hit the rev limiter, several things will happen depending on the car:
1.revs will bounce up and down a little
2.CPU will cut the throttle/fuel to the engine to cause it to not rev up that high/reduce damage.
3.engine will just stay at high RPM constently till a plume of smoke erupts from the engine and either the engine dies, or you have to let off cause you are breathing in smoke and pass out.
On an episode of My Classic Car several months ago, they had an engine burn up contest/test, and they shows to my horror, a 323 like mine going "Vinginginging ing" and eventually there was "inging yeeiengyeaarrrrrrrerereerrrshhhhhhhhhhhhhhhhhhhhhh" and smoke and some poping(hoses probably, and possibly the cylinder head breaking or throwing the crank shaft out the side.
As for is it good to rev before a race or just in plain driving, really, yes. If a car sits for a while, revving it(not all the way up, which isn't good for any car) can break apart the buildups in the engine, sorta clearing it out. In normal driving, it can be beneficial to make high RPM runs/full throttle acceleration. On rotary viehicles(though probably not on the RX-8), it is nearly a necessity to rev the engine to high RPM every so often, and if you don't, they can actually lose power and run worse.
Luckily for me, the 323 isn't fast and to get on the highway a lot of times I go flat out from 2nd through 3rd and it runs great.
What's funny was what happened with my dad's Probe GT. We bought it from an ex-nieghbor, and it wasn't running. My dad got it running, and it ran like crap. My uncle came over to see it, and him, my dad(driving), my bro, and I piled into the car and drove it around going flat out(not constently ofcourse) and letting the engine up to the red line(not rev limiter, though after we got home, my uncle took me for a ride in it and shifted into 1st at about 35mph causing the engine to go up to about 7,500rpm, 500rpm above the red line, though it never hit a limiter)and we noticed an exceptional increase in performance in the matter of 10-15 mins of driving through the nieghborhood(at some illegal speeds and trying to get it to skid since the wide tires were nearly brand new before my dad bought it(before the car stopped running, the guy put tires on it, drove it about 20 miles on the new tires, parked it, and never got it going) and they seemed to grip like mad(until, as we found out, you get on snow)). And now, with 200K+ miles on the original V6, it runs great.