The Beats of Rage Engine has come along way since it was released in 2003, however of all the changes made to the engine the Game Menu and the in-game menu have been untouched?
Why is that, it also needs to be updated, perhaps more so than anything else.
They certainly have not been untouched. Compare the menus in Beats of Rage with the menus in a recent OpenBOR version, and you will see several differences - the text is aligned differently, but OpenBOR is also far more configurable.
But with that said, I do know what you mean...
Regarding the menu: I made several suggestions on how to improve the menu myself but I don't think they were taken too serious (or perhaps the coders didn't have time or inspiration to do it).
Even the original Beats of Rage already offered ways to change the font, but there's still nothing that would allow the modders to customize the options available to the user, or create custom options, change their x/y positions, alignment, etc.
I agree that the menu system should be configurable by modders in the ways you mentioned. But trying to determine the details of how it would work opens a whole new can of worms.
The problem basically stems from the fact that the engine will still need control of most of the menu, and we (developers) still need the ability to change the menu options slightly for existing mods - any and all menu improvements since Beats of Rage have depended on this ability.
I have some more to say on this, but my brain is dead right now so I'll finish writing my thoughts on this soon.
Maybe this should be posted at http://www.lavalit.com
so it reaches the proper channels.
It should have, but I guess it did reach the "proper channels" eventually. Just a few months late.