I suggest building a cockpit and going the pc route as well. Can use pc and consoles and probably run the arcade drivers in a mame setup. Triple monitor racing is awesome and can even do some racing against other people online.
My current setup just uses a wheelstand with some thrustmaster equipment. Added a load cell to my brake pedal so braking is a lot more consistent. One day I plan to buy some nicer pedals and a direct drive wheel for much better force feedback.