Also an old XvT / XWA player here. I have issues with the controls, but not so wide-ranging as expressed here.
I think the developers did a great job overall, had some good ideas, and I actually think the default joystick is great for the most part (using Logitech Extreme 3d pro). But I do take issue with the following:
Over-steering / necessity of counter-steering!
It's maddening that as maneuver to the heading I desire, and then bring my joystick back to center, the ship keeps pitching or yawing for another second. Especially in a dogfight when I'm trying to turn, cut someone off, and fire. It seems as though they made this harder on purpose, to make it more challenging and really set apart those who can "get a feel" for exactly how much they need to counter-steer, or something. But it's a big pain! I flew XvT and XWA for so many years, and was accustomed to being *completely* in control of where my ship was headed. Not so in Squadrons. Constantly under and over correcting to try to come out of a turn headed the right direction.
That's really the one, big, control complaint I've got. Curious to see if anyone else brings it up or feels the same. I have tried playing mouse and keyboard, and have the same basic problem. I don't feel like mouse / keyboard is necessarily an advantage over joystick. I don't know about control pad, don't have a system to try it. Would be curious to hear if the same problem is present there.