...Particularly Killer Queen.
(Me too, but only recently)
Sure one could argue these are just different game modes of established genres, but where to draw that line, how to define a "genre"? Imhho it's the same as with music, there are no clear-cut lines, concepts just bleed into each other, adopt each other, creating entirely new concepts in the process.
Our modern gaming landscape is amazingly diverse, people who think games had been more "original back then" are usually remembering things through the rose-tinted glasses of nostalgia.
Tho I wouldn't be too surprised to see an arcade like this in the Asian region. Online Multiplayer (not massive but with quite a few players) also made it's way to the arcade, complete with your own profile on a storage device so you can take it along to different arcade venues.
At shows like PAX there's usually a special section/event just for arcades, which has also become a rather experimental sector showing off arcade games like Killer Queen. It's a really diverse space, the issue being that only very little of it bubbles up to the "mainstream".
I think Mario Bros was the last of the arcade style games I was really into. Though I remember a skateboard game called 720 Air that was pretty good....oh, and pinball.