yes exactly, I replaced the chips exactly as you described. In the Sansui project I even replaced the NES turbo chip with a 74HC163 turbo chip so the circuitry is identicle to a Duo controller.
The main issue is taking 5 data lines and stepping up to 8, I don't think it is possible to get that to even work. Too bad because that controller rocks, but it would work in Wii using Gamecube to NES adapter!