I've read that there's a max number of key inputs from a USB keyboard, but what about USB gamepads?
To add a little meat to this question, USB gamepads might be able to do 128 buttons at the same time. If hardware is set up for it, the driver is set up for it, and the comunication signal (data pack) is up for it.

You see, the USB keyboard limitation is due to the "standard" USB keyboard comunication data packs sent between the computer and the keybaord, as well as the keyboards' hardware. USB ipac, a "keyboard", doesn't use the "standard" keyboard USB data packs, nor have the same keyboard hardware, so it does not have the same limitation other "normal" USB keyboards have.
On the same line, USB joysticks are much less standardized in their data packs (well, there are different "standard" sets). So the same-time button limit depends on the manufacturer's hardware and which driver it uses. I haven't noticed any limits on number buttons can be pressed same-time on my 8 button, 4 analog axis, 2 digital axis, & one hat button gamepad.
You idea sounds fine for most gamepads, AFAIK.