Well, FWIW, I've already figured out the basic design of a circuit that would trigger a set of switches (transistors) when a simple command line is run. It'll be available when I have time to build a test model. Very simple, and would be a totally seamless solution.
If your guests have to do anything to select the correct controls, it's already more complicated than you'd want it to be. I admit that even the two button presses required to switch modes require you to either have extra markings on your CP, an instruction card, or a very good memory.
My cabinet is a little more complicated than your average dedicated/frankenpanel cab, that's true. But that is the very reason I've been working with Peter Vogels on a custom FE skin for my cabs, so that when a game is selected, it shows you which control panel to use. It's not perfect, but it's the most user-friendly solution possible without adding several hundred $$ to the cost, and many additional months of development for some type of mechanized system.
I also don't think that there is anything on any of my panels that would not be found on an arcade game. They are all authentic arcade parts, save for the PC steering wheel. The combination of controls may not be completely authentic, but less so than your average frankenpanel. The idea was to offer flexibility, without presenting more controls at one time than are needed for the typical range of games.
Anyway, while many people may value function over arcade authenticity, there are many ways to get both. I usually try my best to find those ways. In this case, I think the best method would be to select the modes either with the 49-way itself, or automatically (having the option to manually select if desired).
Randy, there are basically 8 modes now. Wouldn't it be possible with a little different programming, to have the stick temporarily revert to 8-way mode when the Joymode button is held down, and then assign the 8 modes to those 8 directions, clockwise around the stick? Starting from Raw49 at top, all the way around to 16 way at UP/LEFT? That way you'd only need the stick itself, and one button. A ring of markings around the stick would be all the instruction you'd need.