I think, mostly, you are dreaming. This would be great, but you really need a pretty specific paddle controller to make it "Tempest". Something that is smooth and fast moving is what is needed. I don't really see anybody making a production, wireless one. What would be sweet is to figure out how to make a homebrew one that works accurately.
What I really hope will work is a better control scheme than Space Giraffe, which felt terribly broken to me. If I am pressing right it should always move toward the right side of the screen, regardles of if my ship is on the top or bottom. Oh well, we'll see soon enough how well the 360 controller works for Tempest.
If I had infinite space and money I would have a REAL Tempest machine in my house. Maybe this will be a nice approximation? We'll see. The graphics in the screetshots looks nice.