Very fun racing game! I used to have this years ago on my PS2, but I don't play that anymore. I finally decided to get it for my computer, and it's just like I remember: plenty of crashing and destruction!
It's better than FlatOut 1 in the fact that there are better/more cars to choose from, and the same with tracks, but not with free roam. In the first FlatOut, you were able to go backwards on tracks and drive around the area. You sadly cannot on this game, but the racing is still fun nonetheless.
As for the demolition derbies, they are also plenty of fun. It's nice when a game isn't too easy, so I do like the fact that there is a contact timer of about 44 seconds, meaning you have to smash into someone at some point. The AI is also certainly smarter than the first FlatOut, thus adding to the difficulty of derbies and races. It only has 3 more derby arenas than the first one, for a total of 6, so there certainly could have been a few more arenas.
Lastly, you can't forget the minigames! There are oddities such as Royal Flush, Baseball, Bowling, and a few others where you have to fling yourself out of the car. These are pretty entertaining, especially with friends. It can get slightly monotonous by yourself though.
All in all, this is still lots of fun for a game made in 2006!