Is the lag time between the movement of the device and the movement of the controlled 'object' just due to the HDMI out? If not it seems mostly like a recipe for frustrating to play a racing game where your controller has such a lag-time.
It's the game. It's tough to get used to. It's called Speed Forge 3D if you want to try it out - there's a lite version in the Android Market.
Maybe this was the way the accelerometer is handled. Maybe it is just the game play (this kind of hovercraft may be supposed to react with a delay). The only way of knowing may be to try it yourself, just after Mario Kart on Wii.