1. Yes, people have done it (I don't have any examples handy). I know there are others who can speak more in depth, but there are some problems with a MAME approach.
2. Yes, you can use these parts, but you will probably need to hack the existing controls and connect them to either an Opti Pac or Oscar's optical spinner board. You have to give the computer a way to interpret the existing control's commands.
With MAME, you get into individual games having different controls (i.e. 270 degree wheels vs. 360 degree wheels, and others). So configuring every game can be an issue. You may do a search on the boards, this has been discussed.
For these reasons, many people do console sit down cabs. I have an old Turbo cab running a dreamcast system with an Act Labs wheel/pedal combo. The dreamcast has many direct arcade ports (Daytona, SF Rush, 18 Wheels, etc) along with the ability to run Gran Turismo 2 via Bleemcast, Sega GT, Tokyo Extreme Racer 2. A PS2 or Xbox system also would work very well.
MAME'ing that cab, while not impossible, would be very in depth without the functionality you may expect. The upside is being able to run PC racing games.