I bought one of the Universal Joysticks...and I can honestly say it's a good thing. It's what got me interested in building my own stuff.
I opened it up, and it seems pretty standard on the inside. Joystick is a cheaper micro-switched dealie, but I haven't had any problems with it's performance. Of course, it's an 8 way, and that plays holy heck with your Pac-Game, but what's a guy to do? It works FANTASTIC for Galaga. Go figure.
I was thinking about hacking it and hooking up a 4 way stick (or at least a switchable)...doesn't look too difficult. Good times.
So, to answer your question, Yes, it seems pretty a-ok. Of course, I have little to no experience with home Arcade stuff, but it's tons better than trying to play a fighting game on a joypad. Try and get the Universal stick, not too much more expensive, and it's got that keen "use it on all 3 consoles" thing going for it.
nsb