The thing is though, it IS a PC and not a console. Launchbox only runs on Windows currently, and is a program for that operating system, therefore you are always going to need a mouse or keyboard at some point in time, thats just the nature of PC's.
Well if a multi billion dollar making company with thousands of employees cant even do this in a satisfactory way for you then what hope does a program with only one developer have? It is probably just down to the underlying architecture being that of a PC and not a console which means some things are more difficult. Console OS's are designed out of the gate to be used with a controller only, this is obviously not the case with a PC where the OS IS designed for a mouse and keyboard and not a controller. They are completely different products with different goals.