Using named as caching name server

In our production environment we have the named configuration below mainly for "caching" responses.

Is this the right way to be doing things? To me it seems like this configuration would really only speed up requests for the local zone 0.0.127.in-addr.arpa, everything else it is just going to forward off to w.x.y.z. Does this actually "cache" anything?

I feel like I should ditch this and the resources on the boxes to run named and just point to w.x.y.z in /etc/resolv.conf and call it a day.

w.x.y.z is a load balanced vip of DNS servers

controls { inet 127.0.0.1 port 953 allow { 127.0.0.1; } keys { "rndc-key"; }; }; options { directory "/var/named"; # pid-file "/var/run/named/named.pid"; dump-file "/var/named/data/cache_dump.db"; statistics-file "/var/named/data/named_stats.txt"; allow-query { any; }; allow-recursion { any; }; forwarders { w.x.y.z; }; forward only; }; zone "." in { type hint; file "root.cache"; }; zone "0.0.127.in-addr.arpa" in { type master; file "master/db.127"; }; include "/etc/rndc.key";