I have one joypad which works with pc, and I am fairly certain that my brother has one as well, so I might try and get him to try this with me. I like the idea of playing with others in the same room. I have a PS3, and one of the most fun games is Buzz, which is a quiz game that I play with my brother and his wife, and we always have a laugh, and its especially fun to make fun of each other when we fail. We also play Little Big Planet every now and then which is a multiplayer platform game. Every now and then I play co-op games with my brother like Resistance and Army of Two which is first person and third person shooters. Those are split screen games, but still a lot of fun.
Its a great idea, and if you look at something like the Wii, its also an idea that a lot of people actually like.