http://www.conceptlab.com/outrun/ Doesn't look like it has gone beyond concept stage but dear god why ruin a perfectly good OutRun cabinet for something that will just end up a pile of garbage?
Doesn't seem wrong to me if the result could help kids who are chained to a electric wheelchair enhance their everyday life. It certainly is worth the OutRun cabinet and who knows if it worked in the first place. As far as I can tell they replaced the screen with an LCD one and it's just a PC running inside. They might as well just bought a cabinet with a broken screen and no board inside, so it probably wasn't such a big loss for general game culture conversation.
Yeah, that does seem a bit dangerous. If you notice, the guy keeps looking around the sides as he's driving. It's a cool idea, though. It says on the site that they're working on an iPhone version. It'd be cool to have that on a bicycle or something.
Let me know when they get that thing going over 250 km/h and drifting around long corners. Then I'll be interested.