The performance he's talking about is not about hardware but player's performance.
The auto-aim will aim to the player, yeah, but you're only able to get body shots unless you use the aim key which is really bad for duels; You perform worse.
Auto-aim is not going to happen, just becasuse this is multiplayer and you'd be basically giving a free hack to people, which at the same time it only makes them play worse. I understand wanting to use the N64 controller, but the game is just not designed around it.