I tend to prefer the enclosed cockpit style cabs. I've got two of those, and two open cockpit cabs.
Biggest downsides to these cabs are their size and weight. They eat up a good bit of floor space, and moving them is a pain. This does work to your advantage at auctions, most people won't bid on them unless it's something current that makes money or rare and valuable. Were you looking to buy one, I'd hunt for a Pole Position cockpit. There are quite a few more PP cockpit cabs out there than there are working boardsets to restore them with. As a result the cabs are inexpensive and you're not MAMEing something that's irreplacable.
As far as controls, it would depend on what your favorite driving games are. Older ones tend to use a 360 degree wheel, newer ones use 270 degree wheels. Arcade shifters are mostly either a hi/lo shifter, or a 4 speed shifter. I'd probably start with a 360 arcade wheel and a PC type wheel for the other games.
A car stereo would be cool, but powering it will be an issue. Car stereos and the attendant amplifiers need a healthy source of 12 volt power. A Radio Shack 12 volt power supply isn't going to cut it, and high amperage power supplies aren't cheap.