Yes. Why wouldn't it? What do you mean by support? Powermame is made to handle plenty of LEDWiz's for the lights. Other than that, there is nothing different with it than regular mame. I'm not counting the 49 ways, because they could be set up to work with regular mame as well.
You wouldn't be building a joystick around powermame. If you want the bells and whistles with lights and such, this is where it's at. It's very new, so no reviews exist yet, other than what is at MikeQ's site and in this Powermame forum.