All of the joysticks will be oriented with "Up" towards the screen.
... I don't see how it could be playable unless the joysticks were pointing as shown.
Depends on the person and the game. I don't like playing the edges, but...
Games like Gauntlet (topdown & puzzle), I play better with the joysticks all parallel. (Like the game was, and unlike your picture.)
OTOH, with shmups, platform, scrolling, and fighters, left & right are
my left & right, so if I'm standing 30 degrees off, I want my left and right to be rotated 30 degrees, too. However, my up and down are near parallel to the screen. So I end up going left up and right down a lot no matter how the sticks are oriented. If the sticks parallel, when I want to go left & right respectively; If the sticks are pointing at the screen, when I want to go up & down respectively.

This is why I don't like playing the edges.
That's just me though.

Most people here say keep all the sticks parallel.
