OK, maybe I'm biased here as a PC gamer who frequently uses a controller... but why not just allow both? Some games like Gears of War on Xbox already do this. Others, like Fortnite, offer crossplay and just show a symbol over each player's head.
Do mouse and keyboard players have an advantage? Sure. So do players with bigger TVs or Series X graphics or less worn controllers or the Elite controller. Big deal?
The PC ecosystem has had open control interfaces since forever, whether it's flight sticks or foot pedals or steering wheels or 3d controllers or all of the above. Both in coop and competitive games, people use whatever input devices they like (and can afford). Somehow the ecosystem hasn't collapsed.
I love my Xbox controller, but it's simply an inferior input for shooters. It's superior in many other genres (action RPGs, driving and flight sims, arcade battles, side scrollers). It all evens out.
I don't get the big deal here. Why purposefully handicap your player base instead of letting them use whatever they want?
And autofire... eh, seems like a non issue. Why not just give the weapons a max semi auto fire rate?