Guitar hero isn't meant for a cab anyway. You need a nice big screen to play on and since the controller is the guitar, putting one in a mame cab makes about as much sense as a wii in a star wars cockpit.

How do you figure?
- A game that's better played standing up
- A game that's you can pick up and play with very little interest in story (Come over, choose a song, rock out, and leave)
- Has colorful and high-contrast eye catching graphics that give you the most visual bang for your buck in a short amount of time
- Doesn't have alot of complicated menus or dialogues that require you to stop for long periods to consider/read
- Has awesome peripherals that rival an arcade experience (eg:light guns, boxing gloves, fishing reel, fire hose, dance pad )
Seems to me like Guitar Hero was made specifically using most of the concepts that make arcade games great.
It even feels natural enough in the consoles at the game stores...
Of course a bigger screen is cooler, but isnt that true of most every game that's interactive in that way?(Light guns, etc).. It's not like there's a visual need for a screen bigger than 27" because the game is very intense and keeps your attention easily.
The only reason we have the image of people rocking out in living rooms in our heads is because it was released on home consoles. If DDR came out on consoles first, no doubt that a home experience would be your first image associated with it, and the thought of dancing around on some metal monstrosity (with breathing room limited to the actual machine which can leave you worried about hitting the guy RIGHT next to you if you swing your arms) in an crowded arcade would seem weird.