Just as an FYI, finally got that all-in-one solution I was looking for. May not be perfect, but it's as close as I could find so far...
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With some custom settings in Hyperlaunch.ahk, got the Silverjuke Jukebox running in Hyperspin. The small touchscreen gets the kiosk controls, while the minilyrics text outputs to the big screen during songs with Milkdrop dancing lights behind the lyrics. The song artist and name get output to the Betabrite sign on top of the Cab. It's pretty cool actually, the Minilyrics automatically download and display the playing song's lyrics from the Internet just like Silverjuke downloads album covers. You can also hook up a microphone to the cab and sing along with the regular singer (to me that is better than regular Karaoke because the regular Artist can make a bad singer sound better or not so bad, plus the mike volume portion can be turned up or down, but I digress).
Silverjuke isn't perfect, but I think it is the best option available for people with a cab who want to be able to run it in a frontend like Hyperspin. The touchscreen template is a bit small and I ran into many other issues setting this up, but no other Jukebox software out there would come close to giving me all the functionality I was looking for.
Support for touchscreen as secondary monitor (mediocre touchscreen templte is better than none at all), Betabrite sign output, Milkdrop effects on the big screen, lyrics on the big screen, karaoke and microphone support, integration with Hyperspin. Hopefully music video support will be available in the future too as I have read on their forums
One big issue is it won't exit from the program the way it should in use with Cabs. Escape key is not mappable and can't get it to work yet even through Hyperlaunch.ahk... tried everything I can think of, including mapping F11 to escape and the silverjuke.exe --execute="program.shutdown(30)" recommendations in the forums, nothing seems to work... I am open to any ideas....... Whaddaya think?