Hey guys, I've been looking into different sound alternatives for my first arcade build. I've stumbled upon the possibility of using car speakers in my cabinet but haven't taken the plunge yet. I've got a few of questions for those of you who have gone this way (lepai/small amp + car speakers):
1. Is the sound quality better than using a budget 2.1 pc speakers ?
This depends on what 2.1 system you are talking about. If it's one like this:
http://www.newegg.com/Product/Product.aspx?Item=9SIA9FD3FR8493It would probably sound pretty crappy. A step up, would be something like these, which I have purchased several pairs of and they perform quite well
http://www.newegg.com/Product/Product.aspx?Item=9SIA1N80PR9496These would probably be on par, and maybe even a little more full range then a simple 4" car speaker setup.
2. Why did you choose car speakers and not speakers(drivers) designed for home hi-fi ? something like http://www.visaton.com/en/chassis_zubehoer/breitband/bg20_8.html for example
Easier to mount for one thing. And, less bulk. I'll give you an example... in this image below you see some 6.5" Sony X-plod's mounted into my son's cocktail cabinet. If I had wanted to have a regular ole 2.0 or 2.1 system mounted in there, it would have taken up precious space, plus I would have had to find a way to mount it to where the sound came out of the ports.

Here is another example from a bartop project. Again, mounting a preboxed, pre amp'd speaker wouldn't be very easy. I would have had to tear them apart to make it work.

Since my cabinet is going to take a fair amount of space in the house I'd like to be able to use it to play music as well and thus my preoccupation with the sound I'd be able to get with thees different set-ups. In my current design I would mount the speakers on the sides of the cabinet.
If playing music, perhaps a Jukebox program in the cabinet is on you mind, then for your own audiophile sake, you're gonna want speakers that will produce a fuller range of sound then a 4" speaker would, and you WILL require an AMP contrary to what others might tell you. You'd be VERY VERY hard pressed to find ANY set of computer speakers being sold that do not have an internal amp to drive them. This is done for a reason, even in the cheapest 10 watt RMS pairs. The only ones that don't, are those little 2" cube speakers which take next to nothing to power them. And who wants to jam to their tunes on 2" speakers? Or jam to tunes using non powered 4" speakers?
You could go as far as your imagination and amplification takes you when it comes to sound. If a Jukebox/Arcade cabinet is your game, then for sure, try going 5" or bigger. I was tempted to put 6x9's in my sons because he wanted a jukebox in his as well, the only reason I didn't is because I wasn't sure about mounting depth. Now that I have his 6.5" speakers in, it became clear I could have easily put in 6x9's. But no biggy, he has what he has, and it sounds AWESOME!! The bass reproduction is fantastic. Something you would never get without eventual clipping on a non amplified setup.