This seems like the opposite of what would be ideal... why go through the trouble of original hardware only to use a clunky-looking Jaguar-style controller? I agree w/ sharpfork, a PC box w/ emulation and original controllers makes far more sense than original H/W with a custom universal controller.
As a proof-of-concept goes, cool, I suppose, but I don't get it...
edited to add: Re-watching the video, I notice he does stress using original console h/w as opposed to emulators for authenticity. Which is fair. But I would think anyone going for true authenticity would want to use the original consoles in the original form w/ original controllers. And hooked up to an old-school CRT TV. Anything less and you're not getting the authentic experience.