They work quite well. I tend to get about a 1 out of 5 correct of the squiggly words, whereas the service is more like 4/5
I am not aware of any successful dictionary attack on recaptcha. And the only OCR techniques to bypass recaptcha was by xrumer[0] but that was a few years ago
[0]xrumer: once popular forum spamming software waned in popularity / effectiveness in recent years