Okay, so now that it's been opened, here's my take on the Gamestation:
It's pretty awesome. The joysticks work "well enough" out of the box, and after the firmware upgrade even the paddle controller works.
Adding arcade/nes/snes roms are super easy, the trick is getting things to work with the joystick. Emulation seems pretty good, just a tiny bit of slowdown on some of the later snes games. Again, the trouble is trying to play on the atari "style" joysticks. But the thing works out of the box with a fair number of games. I had the daughter's boyfirends all here for Christmas and I forced them to play, and oddly enough, they really got into the VERY simple one on one games like combat/sky diver/3-D tic tac toe and the like. It got fairly competitive and a lot of fun, it was good to have a menu system with graphic depictions for the games, as opposed to fiddling around with carts, or just a text list of names (it also helped that I knew all the games or most of them anyway and knew how to play). The joysticks are obviously digital, so if it doesn't register a move you did, you sometimes have to do it again, so not as good as an old analog stick, but not all that terrible since both players had the same handicap.
Overall, for $100 I completely recommend it. I do believe you can use an xbox elite stick on these, but kind of hard to justify $150+ per controller just for this, so I'll likely keep my original consoles on the table (was sort of hoping I could eliminate a couple). Oh and arcade roms seem to work perfectly. Simple games like pacman and donkey kong I've tested and they worked no problem.