I beat the XBLA version with the Destroyer and played a bit of the post-game (I picked up the PC version back around christmas '09 and still haven't beat that version yet). For a hack n slash, the button masher setup of the controller works and mapping the hotkeys to the shoulder buttons, triggers and B and Y works (obviously more limited than the hotkeys of the PC version though). I also noticed some slowdown in one of the earlier levels (when it's crowded and there is a lot going on spell-casting wise and what not) but after that I haven't had any more issues with slowdown. Still haven't tried using the ranged characters yet. So can't comment yet on how well the controller works with ranged chars.
I'd like to see Torchlight II (hopefully it'll have online co-op) and Diablo III get ported to the Xbox 360/PS3.