Analog support has been added to Cannonball.
I just saw this update and haven't tried it yet. (I will tonight!)
This isn't an emulator, but a complete rewrite in C++ by someone with a deep understanding of the game.
However, it requires MAME roms for the graphics and sound.
Cannonball is a program which allows you to play an enhanced version of Yu Suzuki's seminal arcade racer, OutRun, on a variety of systems:
60 fps gameplay (smoother than the original game)
True widescreen mode (extend the play area by 25%)
High Resolution mode (improves sprite scaling)
Time Trial Mode
Cheats
Customisable Music
High Score Saving
Western, Japanese & prototype track support
Analog & Digital controllers supported
Fixes bugs present in the original game
http://reassembler.blogspot.co.uk/p/cannonball-open-source-outrun-engine.html