arcade quality
is a pretty low bar these days

Here's a few thoughts.
You'll need one of the following to install:
1. a metal control panel to mount this in
2. or you'll need to use a router to cut a recess under a wood panel, and then mount this with carriage bolts through the control panel... or you'll have to get creative
3. or you should buy a metal mounting plate if retrocade sells one. I checked, they do.
Here's the link The white ring around the ball is going to show (unless you mask it with paint or a sticker or something). It's kind of wide. White seems an odd color choice for something arcade quality.
The 2" ball is going to be quite a bit lighter in addition to being smaller than an arcade trackball. It won't have the same feel, but obviously that's a trade off for space saving.
As far as it's function, trackballs aren't too complicated. I'm sure that part works fine.