I have an Outrun 1up and had a Ridge Racer 1up.
The build quality on these is that of Ikea furniture. The whole thing feels sturdy enough, with the exception that the pedals are made out durable plastic. They have held up great in home use, but I would never put them someplace like a bar. The pedals are connected to the machine by a 3.5mm audio cord. If you open them up to see how they work each pedal has potentiometers being controlled by the pedals, so they are essentially using volume knobs attached to a plastic fulcrum to control the input. It works.
The Outrun is played more than my other 1ups or pi-cades. The replayability on it is excellent. There are 5 games, 3 of them good, and it took me over 400 times to beat the original Outrun. I still have Turbo Outrun, Outrunners, and a couple other on there to play.
As far as real differences between it and the arcade, aside from size (you really need to sit on a stool to play, but its fine), there is no rumble in the steering wheel, no real force feedback and the shifter centers on each shift.
Ridge Racer has "online play" but it really only records times. No live heads up racing. It does have a rumble, but its not great and only works on a few of the games. Ridge Racer also has 5 games, but there are 6 tracks between them and its really 2 games. Ridge Racer, Ridge Racer 2, and Rave Racer all have the same tracks with minor improvements beteween them. Rave Racer uses a different game engine that handles differently so its hard to switch between the games and not crash. I personally traded mine for a Big Buck Hunter.
I won't recommend Ridge Racer, but Outrun is a fantastic game to add into the lineup. You can play it for a year, get tired of it, and trade it for another game on Facebook (thats what I did).
I can see getting a full sized Outrun in the future based off of my excellent experience playing the One Up.