This is one of the biggest blockers for me moving completely to PC from Xbox... [..]
Me too. I think consoles are better value for money on the whole because they're adequate and come at a much lower cost. But I physically can't play with a controller for more than maybe 30 minutes, tops. Well, I could. If I wanted more pain and loss of functionality in my right thumb. Which I don't. Unsurprisingly. I'm too old for a controller.
The only games I'd like a controller for are racing games. Keyboard is bad for racing games and mouse just doesn't work at all. Of course, if I was serious about racing games I'd have a wheel and pedals. For pootling about with arcade racing games, keyboard will do.
I have always preferred using controller for FPS games as I am nowhere near as good with keyboard and mouse. However the problem I find is there is almost a requirement to use keyboard and mouse for competitive FPS on PC, otherwise you are just at a disadvantage from the outset. From my experience it’s the point and click, strategy, survival and ARMA style of games that seem to work well with keyboard and mouse due to the number of buttons, inventory functions etc. that are within the game.
You're probably better with a controller for FPS games due to the ingame aimbot being enabled. A mouse is vastly superior for rapid and accurate positioning - it's what they were designed for - so anyone who has any familiarity with a mouse will be able to do that better with a mouse than with a mini joystick unless they have a handicap that prevents them using a mouse but doesn't prevent them using a mini joystick.
Maybe mouse and joystick or trackball would be best. The main drawback of KB+M is that the keyboard is a digital input and in some games having two analogue inputs is better. Mouse for looking and aiming, some other analogue input for movement, buttons on mouse and/or other input device for the things that would usually be handled by keyboard (map, inventory, journal, etc).