I made my own digital version
- not plugging them as I've got none, but I put a description of how they work there).
They're basically a sync separator IC and then a pair of analogue timers to delay the syncs, which'll move them in relation to the RGB streams, causing the TV to place them differently. So there's no pixel processing or lag involved. Obviously they can't change the image size, so you'll still need to stick your hand inside the machine for that.
The bit I'm interested to know is what the jitter is like on the pixels - do they introduce a shimmering effect on the vertical edges of pixels? Anything that locks onto the sync, introduces delays and puts it back out again will put a small amount of variation onto the sync time, which may be visible to the user on a big monitor. Mine suffers from that a bit, so I have it bypassed where I don't need it.
I've also not thought a lot about light guns. This won't introduce any lag, but it's changing the sync position in relation to the pixels, so I don't know what that would happen if a game didn't offer recalibration (Does Lethal Enforcers offer any?). A minor point and I might be wrong though.