immi101: * since XInput (for weird reasons) only supports gamepads, games still use DirectInput for Mouse/Keyboard support
XInput was built specifically for the XBox controller, and does not support configurations with more buttons and/or axes than that has (I assume it can support devices with fewer inputs, but I'm not entirely certain). DirectInput, on the other hand, supported an arbitrary number of buttons and axes.
I think the reasoning was that having a fixed number of controls would be easier for game developers as they'd always know how many buttons and axes the controller has, as well as knowing which logical input is mapped to which physical button (provided the controller wasn't manufactured to completely broken specs).
I don't know what fighting sticks for XBox do with the analogue axes, I'd assume they claim to have them, but always at 0 (or 50, or whatever the default is).