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I don't think it will necessarily improve typing speed, but it is definitely a good test. I suggest you supplement Typeracer with a touch typing tutor app. My favorite is klavaro (http://klavaro.sourceforge.net/en/).

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For what it's worth, I used type racer to learn to touchtype. Took me from about 25 wpm to about 65 wpm. I seem to have plateaued there though - I actually type at around 90, but with mistakes. The game doesn't seem like a good tool for shaking out the mistakes.

Another problem is that it doesn't teach you all the weird punctuation we use as programmers - I still look at my keyboard when typing code, which I don't have to do fit normal text...

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