Keyboard configuration

That wont work unfortunately. The only way to have multiple input devices is to switch them into Gamepad mode.

See: New 2.x Configurable Keyboard/Gamepad Firmware

Once the firmware is updated, you’ll need to connect to your Picade with serial somehow and send it:

g
s

g will load the quick gamepad setting, and s will save it.

In your case a quick Python script on the Pi that does the following should suffice:

import serial
picade = serial.Serial('/dev/ttyACM0',9600,timeout=1.0)
picade.write("g")
print(picade.readline().strip())
picade.write("s")
print(picade.readline().strip())

Changing /dev/ttyACM0 to the relevant device if you have multiple connected.

I should probably compile a version of the firmware that has the gamepad bindings set by default!