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Using off the shelf consumer electronics for safety critical applications is fine.
In this case the controller is engineered to work well for a resonable time.
Ok, the controller is not waterproof, but if you get water inside a sub, you have larger problems than moving it, and you have other ways of triggering an emergency blow.
honestly I would prefer to drive a DIY custom built machine using a popular off the shelf gamepad, that way I could buy a handful of controllers and keep them in the cockpit as backups.
Given the option between making my own controller vs buying a dozen Xbox controllers, yeah gonna go with Xbox. Nothing I make will get anywhere near as good.