It's possible already. Using an open source app called PadForge. I've setup a profile that works without steam and emulates xbox360 pad. I've used it without problems in Forza Horizon 6 which is an UWP / PC Game Pass game, also in various emulators.
I'm not saying that the article is untrue. I'm not a historian. What I'm saying is that all content from this source should be treated with high skepticism.
Looking how some emulators just ask users to copy firmware / software / keys from their real consoles - couldn't the same thing be done and only the hardware layer be emulated?
Do you use end to end encryption? I don't want 3rd party companies to see my data.
Of course obsidian is not open source so I can't guarantee their e2e sync service doesn't sneakily send the data to their servers, but it's still less risky than having it easily available to the company employees.