Yeah, that should work.
Like you say, you just need to figure out the wiring.
Back when I used to work at Dynamo, I talked to some of the design engineers, and I wanted to suggest a cabinet I designed, but they told me it wasn't really marketable or feasible.
For some fighting games, I designed a two-player cabinet which was basically two single-player cabinets back to back so that the players stood on opposite sides of the cabinet and couldn't see what the other person was doing, and couldn't interfere.
This was back in '92 or '93 when Street Fighter was huge and we were rolling out about 300 of those a day.
During lunch or anytime we had a chance, we would have competitions, and some got really heated where we were pushing each other, or hitting the other guy's controls to make him mess up.
All in good fun, of course.