So what this gives you is a stick that is hard to go from Up or Down to Left or Right, and very easy to go from Left or Right to Up or Down. This would give it a heavy "preference" or weight it toward the verticals. Changing the order of the switches isn't going to help. It will just weight the stick toward some other direction, which is really not what you want to be doing.
Just thinking this through initially, I had the exact same thought as you but then I was thinking a bit more on it - there's a chance that something doing with timing of switch presses is being used to determine 'primary' button. Since a computer is doing the polling, even milliseconds should be discernible and it should be possible to clearly determine what switch was pressed first and make that one only activate or switch to another switch if it's clearly activated,
Basically, there seems to be - based on how it's done - the potential for this to be much more than what you said and have a decent algorithm in it to determine what direction to prioritize under a variety of situations/combinations of presses.
Sorry, but I honestly believe you are mistaken. I was referring to the switch wiring method in my post, not a "computer" (microcontroller), which I am all too familiar with capabilities-wise. Regardless, there is not much difference in the microcontroller method, other than that one can selectively maximize or minimize the weight given to the cardinal directions.
The plain and simple fact is that a controller can never "know" the intentions of a player, without having a substantial amount of input to base a decision on. With a switch based stick, there are 8, and only 8, pieces of information from which to decide. From those eight pieces of information, only 2, other than the information already in hand (current direction), will ever be important for considering the intent of the player in 4-way mode. Cardinal Direction A + Cardinal Direction B, and Cardinal Direction B.
If you know of some method, other than the ones I provided above, to accurately discern a player's intentions from a paltry two pieces of information, then perhaps sharing your idea would be more beneficial than inferring the possibility of some magic computer stuff that logic can't support.
We also want to make sure that results are quantifiable and not attributed to a "honeymoon" period associated with a personal expenditure. We all know what MAME does to the controls in "sticky" mode. If this piece of hardware can do more than that, we should probably get it working on stock market tips

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RandyT