The thing I missed most when trying to play FPS games with an arcade setup was the mouse buttons.
You can aim fairly well with a trackball, but having the five extra buttons available, and not having to use them with your main control hand, is a big benefit.
As far as using a wireless mouse on an arcade cabinet, it works fine.
The one problem it gave me was that I had to reposition the receiver inside the cabinet to get it to function properly.
I think the monitor was interfering with the signal with my first placement.