Ok, to echo some sentiments people have already discussed. I think Xarcade stuff is ok. Certainly not amazing, but definitely passable. Their encoder is fine too, unless you think you'll have a need to remap key presses the buttons are set to. I don't think there is a way to do this (last I checked anyway).
I would also agree with others that slapping an xarcade onto an arcade generally does not look good. If you're not into looks and just want a stand up arcade machine that's playable, then go for it, slap one on there. But then you need to ask yourself why you'd building a cabinet to begin with. Why not just set the tankstick in front of your monitor with two chairs there.
Regarding what is the most optimal arcade cabinet to use however, there really is no easy answer. There's no clear winner. There's many many different arcade cab shapes. It's really up to you to look at the tank stick, look at the cabinet, and think about how you would attach it. Most often it would seem that the easiest solution would be to cut the existing wood on the cabinet and make a "shelf" to rest the tankstick on, and then bolt, screw, glue, whatever you want to, to hold it on there. So you really need to look at the shape of the cabinet and decide for yourself. Obviously the oether consideration is the desired screen size. Be sure to get a cabinet that's big enough to hold the desired monitor.
Also, just another little piece of advice. $200 is a lot to be asking. I personally have never paid more than $60 for an empty cabinet (and I thought $60 was even a lot). The one exception was that I bought a 4 player cabinet that was $100. Generally you want a gutted cabinet, and hope to pay $50 or less.