Wouldn't really need an EE degree as such, just a minimal understanding of binary, electronics, of of exactly what the hell is what in there. The last of all that seems like the most difficult part. Upgrading the sensors shouldn't be difficult at all, depending on exactly what kind of signal the existing sensors send. Sticking to same sensors would be a good idea to keep the values in the same range. I could see how "modding" the stick to remove that deadzone problem you spoke of would be very useful, and should be fairly simple (though I would have to know exactly how those particular sensors worked.)
But a touchscreen? lol For what? Would be spiffy as hell, sure, but.... =P