Get Xpadder and Xbox 360 Controller. Inside Xpadder do the following: Set Keys: A,Q,W,E,D,C,X, and Z to the Left Thumbstick. Set Keys: 4,7,8,9,6,3,2, and 1 to the Right Thumbstick. (NumPad) Make sure to set both to the Xbox 360 controller Thumbsticks Exactly in the positions that they are on the Keyboard.
Now you have as close to the Real Etch-A-Sketch as is currently possible (at least as far as I know) and all without any need to build your own special hardware. I used a pocket Etch-A-Sketch made by the Ohio Art company as my inspiration and to remind me the way the knobs spin to control the drawing direction of lines on the Etch-A-Sketch.