Not in the wall, just on the wall. I don't think my landlord would be too impressed by me hacking big holes in the plaster. I picked up a cheap 12" touchscreen a while ago and its just a case of shoving that in a box with a mini itx board. Not complicated or expensive.
As for the cockpit that's also easy and not too expensive. A little basic woodworking, paint, old computer parts and a HOTAS rig (Mine uses a Saitek X36) Total about $500. The trick is having the space for it. To be honest I dont use mine half the time since its in the basement and it gets pretty cold down there in winter.