There are a LOT of cars on the road today with variable ratio steering by the way. Almost the entire mercedes benz range has it STANDARD, with some models getting an option for an even more radical version. The 997 porsche has it for instance, as does Audi, BMW (although their system as stated above uses a special gearbox, while the other ones are just using a variable ratio rack. Several fiat and opel models get it also, and I'm sure a lot more.
F1 uses it extensively. These guys supply it I believe.
http://www.nevodevelopments.com
Because the ratio is changing as the steering wheel is turned, it does have the tendency to feel a bit weird because the steering wheel angle is going to be different when compared to a constant ratio system. Hence the driver often feels like the car is understeering simply because the steering wheel angle is greater than previous. However, this is usually solved by explaining to the driver what is happening. The biggest benefit of it I think is the reduction in the sensitivity of the car in high speed situations, ie straight ahead, allowing a more agressive aero to be used, but still having a ratio that is useful when negotiating slower corners.