The only real problem i could forsee is that control would be a little sluggish for the 360....
I know that i've tried using both the arrow keys and the mouse, and i pick the mouse every time. You MUST use the mouse to hit the majority of the notes, and this game is ultra sensative to your reflexes. Most people can slide a mouse back and forth faster than they can hit a button two times..
However, online play would be freaking awsome for this game..
If you've ever played amplitude, it could be the same experance, possibly with a Co-op mode (with up to 4 people), and a competative mode.
As a matter of fact, it's kind of strange that there IS no online play. I assume both people would have to have the same file, but there could possibly be a way to stream it to the other person.