Just out of curiousity, what do you call the raw, err, data direct from the joystick, before it goes through your controller? Maybe I could just use that and forget this whole raw/not raw part. 
I believe it is called an electronic "signal", which, btw, needs to be translated before it can become data 
"raw signal" vs "Raw49
tm", fine I'll go with that, and stop pushing my opinion. This is turning out to be one of those "it's emulated" vs "it's simulated" disagreements that matter little, but never end anyway.

Now to the real stuff:
So the translation still happens. It's the translation I'm worried about, not who does it.
There's really nothing much to worry about. Either it works, or it doesn't. In this case it does.
First you say the Wiz49 takes out this step, then you say wiz49 does the step for the computer, then you say it doesn't matter. Actually, you've been saying it doesn't matter from the begining. [cut-n-paste]The translation still happens.[/cut-n-paste]
And since the computer has never done this step (not in official mame nor in mameAnalog+), your product is not removing it. You even say below the computer can't understand this raw, err, original unmodified data. Heck, the whole reason for your product is to do this step (unless in a different mode of course).
Well, yes and no. The computer has been doing the analog stuff for quite some time.
"doing the analog stuff"

Not the "stuff" I'm talking about (translate from 49-way's signal to analog). I'll say it again: the computer has never, ever translated the 49-way output to an analog one, never; not on a sound card, not on the motherboard, not in a device driver, not in windows, not in mame, not in analog+. (
edit: sheeze, sam I am) Otherwise we would not need your wiz49 or dave's SJC.
Hmm, are you talking about normal gameport analog joysticks (which the computer does do "analog stuff"), instead of the specific 49-way joystick I'm talking about? Well, yes, the computer did it for gameport joysticks, while USB joysticks do this step themselves, but the 49-way joystick is not a gameport joystick.
The interface steps along the analog range in the same manner the joystick actuates the sensors. I have a hard time believing anyone responsible for writing the Analog to 49-way driver code in a game is going to screw it up so badly that it bears little semblance to the original hardware.
Of all the areas that mame make compromises, the most (IMO) is in the inputs. (I'm bias about this, though)
The analog to 49-way code was designed so (most of the) normal analog joysticks on most operating systems seem to work like (aka simulate) the original 49-way joysticks. Much like with the new-ish analog to 720 input code, or dial to rotary codes. (Note all of these are game specific, & part of the game drivers.)
The analog to 49 codes work okay with most, but not all, analog joysticks: so no, mame did not screw up royally. The question is "Is the wiz49 one that works, or not?" . . . .
Again, not only does it work, but my testing shows that it works properly in both 49-way modes.
Great to hear. We agree that this is the most important part.
The rest are details I'm interested in, think are mis-understood, or feel strongly about.