According to Linux documentation, you should use the TCP_TW_REUSE flag to allow reusing sockets in TIME_WAIT state for new connections.
It seems to be a good option when dealing with a web server that have to handle many short TCP connections left in a TIME_WAIT state.
As described here, The TCP_TW_RECYCLE could cause some problems when using load balancers…
EDIT (to add some warnings 😉 ):
as mentionned in comment by @raittes, the “problems when using load balancers” is about public-facing servers. When recycle is enabled, the server can’t distinguish new incoming connections from different clients behind the same NAT device.