Ugly but awesome games? How about...
Hi-Octane, for the PC (but with maximum untextured ugliness and framerate drops in the Saturn port)? It looks gross with its pathetic draw distance and dull colors, but it's easily one of the best futuristic racing games that I've played, right up there with F-Zero GX and Wipeout 3.
It's a great game for a number of reasons. First off, it has ultra-floaty handling like Wipeout, but the tracks are wide enough that avoiding the walls isn't such a pressing concern. What is a pressing concern is killing everybody else on the track; in fact, this game feels more like a vehicular combat game than it does a racing game - an aspect enhanced by the inclusion of a Twisted Metal-style deathmatch mode.
I could go on about the great track designs, or the perfect integration of racing and combat without too much emphasis on both, or the myriad options and gameplay modes, but I'd be beating a dead horse at that point. Really, you owe it to yourself to play this game at least once.