I'm pretty sure Blitz used Midway/Wico/Happ 49-way joysticks. You can play those games with 8-way sticks, but it's going to handle poorly. My understanding is that 49-way sticks can be configured through software to act like normal 8-way sticks. Research 49-way sticks to find out more about that.
As noted, a dedicated 4-way stick is best for older games like Pac-Man, Frogger, Dig Dug, Donkey Kong, etc. There are some sticks that allow you to flip over an actuator, adjust a restrictor plate, etc. to switch between 4-way and 8-way, so you can play those older games and then switch over and play newer games that have diagonals like most fighting games, shooters, etc. Whether you want a dedicated stick or an adjustabled one is a decision you have to make for yourself.