I've never used a PS1 wheel that was worth the plastic they were made of. Now, it may be possible that there were good ones, but I used a few different ones and none of them were any good.
If you want decent analog control for any PS1 racing games, your only real options are the neGcon (which was fantastic, and supported by a pretty wide variety of PS1 racing games. All of the PS1 and early PS2 wheels were based on this controller) and the JogCon (which I thought was even better, but the build quality was varied and it was only supported by GT2, R4 and RRV).
I've played several games, including GT2, with a neGcon, and it is a night an day difference between using a Dual Shock with it. Modulation is great, and once you get used to using the controller, steering is far better than anything possible with analog sticks.
I once used a JogCon once as well, but not with GT2. It was a fantastic little controller for playing RRV with, so I have to imagine playing GT2 with it would be even better.