One game I can think of that uses TILT is space invaders [invaders].
Tilt is usually a feature of pinball games; I believe the word comes from when players used to try to physically 'tilt' the machine to get the ball to roll where they wanted. Now days its mostly just bumping or shunting the pinnie with you hip. Either way is looked upong as cheating (strategy to some), so do it too many times and the machine will go into 'tilt' mode, rendering the flippers inactive and you loose your ball.
I reckon standup cabinets use tilt to curb violent play; beat up the machine too much and your game just ends.

Hooking up tilt to a control wouldn't be very beneficial. I cant think of any home made cabinet that has tilt come to think of it. If you hooked up something INSIDE the cabinet to register a tilt would make it very authentic though (and probably piss you off too).
Or maybe you could rig up this if you really want tilt. Use your fingers to make the sex sign

(pointed index finger of one hand into an 'O' shape created by the other). Do this pointing your index finder down and the 'O' horizontal. Make these pieces from something conductive. Now, if the finger was suspended by a string, when it come into contact with the 'O' it would register a tilt. Oh I dont know!