Yes, it will work with RetroPie. The X-Arcade’s not a bad choice, especially for the price. It looks like Happs joysticks and microswitch push buttons. http://suzohapp.com
IMO you do get what you pay for. If you’re willing to spend more, Ultimarc makes great products. The iPac is their keyboard encoder and they have controls that are a step up from the low end Happs controls. In the build-your-own-arcade-cabinet circles, I would say they are one of the go-to suppliers.
It just depends on what you’re looking for. Some people love microswitch pushbuttons, some people swear by leaf switch pushbuttons. Serious fighter guys go for true Japanese Sanwa sticks, others like the sticks that can be converted between 4 and 8 way. I think what drives most people is what they are used to. If you are a Donkey Kong nut and you try to play it using a Sanwa 8 way stick, it’s not going to feel right.
If none of that sounds like it matters to you, then I think you’re on the right track with the X-Arcade package.
I’ve been doing some research (learned a LOT since I posted this) and I’ll either go with the IL 4/8 switchable joysticks from Paradise Arcade or the Ultimarc Mag-Stik Plus because I can’t imagine trying to play PacMan without that feel.