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!