I'd like to eliminate the 4 tangled usb cords jutting out of the back of my controller.
Question 1: It seems like the easy solution is to plug them into a hub and have the (1) cord from the hub coming out of the CP. Yes?
Or you could untangle your cords and zip tie them. But a Hub is a solution.
Question 2: But each of my components has like a 6' (2 meter) cord coming off of it and if I add a hub thats an additional 6-10'. Will this affect performance?
Up to 2ms delay that you shouldn't notice.
Question 3: Also, do I need a hub that supports USB2 or just USB1?
You didn't says what your devices are or if your computer supports USB 2, but assuming normal controls either is fine. I see more problems on USB 2 hubs.
Question 4: What other options should I look out for ?(ex. powered / not powered)
Again don't know what your devices are so not sure. Assuming just Arcade Controls, you could go with unpowered. I always suggest powered though as I tend to see less problems.