If you want precision then an arcade shooter like Rogue Squadron isn't for you. You should be playing X-Wing Alliance and other games in the X-Wing series.
Also, you don't use the D-Pad to control the fighters in Rogue Squadron and because the games were made with the N64 and GCN in mind, they work perfectly fine with the analog sticks on both controllers and are extremely precise. I should know, I've completed all three games 100% with the artistic precision you think you can't get with consoles.
I also pride myself precise gameplay, it's the highest thing I look for in a game and Factor 5 did it with Rogue Squadron without the need for a joystick. Well done to them...
...but as I said, it sounds like you're more for the X-Wing series than Rogue Squadron because it's more of a flight simulator to Rogue Squadron's arcade mayhem.