You should stick to what is comfortable to you. A lot of people use fight sticks since that is what they are used to from playing in the arcades. I agree that the d-pad on the Dualshock is not that good since you can press left/right and accidentally push it slightly forward, registering an up thus ruining your combo.
I have a fight stick I use for Street Fighter and King of Fighters. When I played this during the beta I assumed I couldn't use my stick because throw was mapped to the right stick, but now I see there is an alternate config for fight sticks. I tend to use the analog stick on the dualshock because I've never been a big fan of playstation d-pads. Do you think it'd be worthwhile to make the switch to fight stick, or does this game not benefit enough from it?
Does R2 work on your stick with this game? Mine doesn't :/
Fresh to death