Well, thanks for the thought... I bought one, just got here today, and the dpad is terrible. It looks good and feels alright, but it's way way too prone to input diagonally. I can have my thumb on the very end of the crosspad and the slightest bit of transverse force makes it go diagonally rather than the way I want it to. Not the worst thing in the world, as I can now pawn it off on a nephew as a christmas present who plays mostly rpgs and he'll never notice as you can't even most diagnoally in most snes RPG.
You really should invest in a joystick though, they're amazing for touhou.
Hmm... are you suggesting a flightstick or an arcade clone setup? I don't think I'd get used to the former, but I'd defintely consider a joystick + 4x2 arcade setup if you know of one that's available for under $100.