The paddle is confirmed as working in the US version of Space Invaders Extreme. Check out the SIE thread for the link.
What's wrong with EBA and Ouendan 2? Well, aside from EBA being a sad imitation of the first Ouendan's pure awesomeness, with a much lamer setting and story to go with the pure cheese soundtrack. The dot patterns were much better in both, and I thought Ouendan 2 only fell a bit short of the first one musically.
James
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