I'll say the thing nobody is willing to say here. Making a console cab is a stupid idea.
I disagree.
I have an Xbox arcade machine and it has been excellent.
On top of being able to run MAME and FBA for the slew of actual arcade titles they encompass, I am also able to run several other titles such as Guilty Gear X2 #Reload, Soul Calibur II, DOA 1, 2 & 3, House of the Dead II & III, Mortal Kombat Deception, Sega Soccer Slam, Top Spin Tennis, NHL Hitz, NFL Blitz, etc...
I also have a Dreamcast cabinet which allows me to play tons of greats from that console, though I do admit it is nowhere near as versatile as the Xbox cab.
Now, if the idea was to play non arcade cabinet friendly games, then yeah the idea is stupid, but there are some very arcade cabinet worthy games on consoles.