Everybody just seems to says it's Analogue, like it's Voodoo Magic and leave it at that, like it can't possibly be understood by anyone in the Digital era.
From what I can find the encoding is fairly simple, It's just a FM modulated signal, where the length of pits and lands represent the distance between the waves in the FM signal. There are a couple of overlapping carrier waves that encode the video and the two channels of audio.
I know enough about engineering to be dangerous, so this next bit should be taken with a Cadillac sized grain of salt, and is basically me thinking out loud.
There would be a fair bit of electrical engineer involved, but capturing the output from the optical pickup (maybe using a modern Blu-ray pickup for better auto focus), would seem the logical place to do it, and then do all the post processing in the pc from there.
Presuming the disc encoding format is CAV, You could go all in and treat the laserdisc like a record, and try and isolate the disc from any drive motors stutter and eliminate disc flex, by placing it face up on a heavy belt driven platter, to gain more consistent capture results.
Making multiple captures of the same disc or more than one copy of the game, and then averaging results could help with noise reduction.
End random thoughts
Is there any information on what format of laserdisc the arcade games use? are they: CAV (Constant angular velocity) CLV (Constant linear velocity) CAA (constant angular acceleration) I'm guessing CAV and single sided, because of the way the games constantly jumping scenes.
Are they PAL or NTSC? is there a list somewhere of all the game and there disc formats ?
Index 
Flat 
Finding real technical information of LaserDisc is hard work.
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Re: Question about ALG driver status
