d. Computer (retropi?) will be contained in the control panel.
One downside to using a RasPi instead of a PC is the difference in computing power.
Also, there are more applications if you're using a Windows computer.
Depending on your desired game list and applications, it may not be an issue.
e. New spinner? I think the Oscar spinner should still work, but a flush mount would be better.
f. New trackball needed for flush mount?
If you're good with a router, you can countersink the trackball and spinner mount plates and cover it with a vinyl overlay.
If you want a new spinner and trackball, the U-Trak and SpinTrak are plug-and-play with an I-PAC2.
I really like the TT2 spinner, but Randy only sells one with Slave configuration wiring (Dupont pins that can plug into the I-PAC2) if you also order one with Master wiring.
- If you want a TT2, you can use the TT2 (Master) alongside the I-PAC2 and U-Trak -- two USB connections instead of one.
If you want to use the U-Trak with the optional trim bezel on a 3/4" panel, consider routing out a 1/8" pocket on the underside of the panel so the top of the bezel is level with the top lip of the trackball body.

g. Replace old IPac with something new. Is the new IPac still good? Other options in the US?
Yes, the 2015 and newer I-PAC2 encoder is great and is an optical (mouse) encoder for trackball and spinner optos via the Dupont pins.

1. Light up controls?
I like always-on single color 12v LED buttons powered by 5v from a hacked USB cable for admin buttons (low current draw, longer life) and un-lit player buttons.
Some people like RGB buttons for everything, but the price adds up quickly and you have the added complexity of setting up and powering the LED controller.
Only you can decide if the juice is worth the squeeze.
2. Better option than retropie?
Retropie is running some pretty old versions of MAME.
One advantage of running a fairly recent (v0.253+) version of MAME is some of the LUA plugins that are available like
defenderlr and
skipstartupframes -- not sure if these have been tested on a RasPi setup.

If you decide to go with a RasPi, check out this thread.
https://forum.arcadecontrols.com/index.php/topic,162889.0.html- This guy posted his version updated to 0.265. (no ROMS included)
https://forum.arcadecontrols.com/index.php/topic,162889.msg1772128.html#msg1772128Should I put on dedicated mouse buttons?
You really only need them while you're setting things up.
They could lead to trouble if kids or drunk friends start button-mashing on your cab and get into the configuration menus.
- This is also a good reason to remove the default P1 Start+ P1 Joy Right (TAB) shifted function on the I-PAC.
Either a USB wired or wireless keyboard/mouse will let you update things as needed while keeping others from accidently messing up your system configuration.
Scott