That is cool. I'm sure they had a blast. I think my wife would have a heart attack if I signed my son up for that. Of course we have a few years before I can even think about that, since he is only 17 months old.
It's pretty darn safe as long as your child's sense of self preservation is reasonably well developed (I.E. he/she doesn't just drive full speed into the tire wall. Spins and such from normal driving are totally a non-issue). Go to the link at the top of my son's first time Karting, there's a video in there that'll give you a better feel for the speeds and the track layout.
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