I can't be as critical of Taxi as some have. I work with a songwriter who is a member of Taxi and has had a couple of songs published. One was placed in a movie and we have actually made some money (nothing to retire on). More importantly, this writer gained direct contact to a legit publisher - through Taxi. At least in this case, the cost of the Taxi membership has paid for itself.
Naturally being published means nothing if the material is not placed, recorded and purchased by the buying public - but it can be difficult to get published without some type of in. Although the odds of geting a cut on a multi platinum recording are very slim, the "meager low paying commercial work" may be better than having your material sitting on a shelf in the bedroom. Over the years, I've been able to buy various pieces of gear (but not enough for a house or car) from payments received for "meager commercial work"
Concerning the review that Taxi provides, the reviews I have read were very accurate and constructive - although not by themself worth the price of admission.
I don't feel Taxi is a complete scam. It can provide a possible in for the right material (very formula driven). Is it worth a couple hundred dollars membership? It was for one person I know.
Certainly, if a writer has confidence, focus, a never ending drive and a willingness to accept many rejections from publishers, producers, lawyers and anyone else you can get your material to, then that writer doesn't need Taxi. But, if a writer is not willing to put in the effort - Taxi (or a service like it could possibly be a tool).
Regarding saving the money for better recording gear - although I'm all for gear (and possibly buying gear could be a better use of the cash) - if your primary focus is song writing, you don't need a ton of gear. I know a writer that used Band-In-A Box, with a live vocal mixed live to a standard two track cassette who got the song published (no money coming in yet from that tune).
Granted, most publishers are getting fully produced "artist" demos (everyone can afford a "decent studio" these days), and some producers and/or labels prefer a recording what is already mastered (gee, the label doesn't have to invest in studio time) - but if you're looking for a writer deal (vs. an "artist deal") a good song with a good vocal is what it is all about.
I must go on record as stating I am not personally a member of Taxi. I'm not even a fan of Taxi (I'm sure many people with no real chance pay fees to Taxi - with no possible return) - but I have actually gained some "meager" income as a result of Taxi.