I have heard where people try to make tracing even more fun, by calling the dots train tracks. They tell children to pretend that they are the train conductor, their pencil is the train, and they have to follow the train tracks. It comes back to what I always say, "Learning should be fun."
I can remember tracing things even past the stage of learning fine motor skills. I enjoyed getting tracing paper and tracing images that were past my drawing skill level. It helped me to develop the "feel" for how to draw something. It was a confidence booster, kind of like training wheels, for the skill of drawing.