You can perform surgery with a sword too... but the results arnt going to be pretty.
Kinda stated... that simplistic games , such as constant walking beatem ups, may be easier than others... such as fast paced, and or off/on directional style games like MK, SF, etc.
In reality, angling the sticks doesnt save much space... and even if you use a 45 degree standing corner solution, you can still use vertical alignment of the sticks. Thats how about 90% of all arcade machines were designed an produced.