X-Men Arcade is a different experience at home than it was in the arcade. The game was designed to eat quarters, so when that isn't a factor, the cracks become more noticeable. Enemies follow simple behavior routines and most fights become rugby scrums.
Unlike more "modern" brawlers (again, I point to Scott Pilgrim), which introduced mechanics like leveling and stats, X-Men presents a blunt, straightforward experience. Each of the six playable X-Men has the same base set of punches and kicks, which lead to some combos. Though important to play, you're likely to button-mash your way through large portions of each level.
When you're not hammering away at the buttons, you'll switch to mutant powers. Each X-Man has one power, offering one of the only major differences between each. But, as you cycle through each, you'll find that the differences between powers are more cosmetic. There are a few variances in range, though each serves the same function - clear out enemies in one hit.
X-Men is directed more towards fans of older games, not newcomers. Again, that's not to say players who equate arcades with Bigfoot sightings won't find something to enjoy, but really they're more than likely to pick it up, blast through a level and go back to something else. Gameplay holds up, but only if you're willing to overlook the lack of modern enhancements.
If you're a fan of older, arcade beat 'em ups, and have a set of friends (either locally or online) to play with, X-Men Arcade is a fine purchase. It's not a must own, but is still fun with friends. Without the friend factor, X-Men is a flat brawler. It's fun for the first hour, but once you've crushed Magneto once (a half-hour worth of play, tops), there's little incentive to want to do it again.