A Teensy 4.0, a 32 bit ARM-duino, has sufficient grunt to handle the interface to X-Plane, process the incoming data and using an I2C multiplexor distribute the data to one of 5 Arduino Nano's, each of which looks after 3 or 4 Instruments and the occasional cockpit light bulb (LED). The I2C multiplexor is used to a) level shift between 3.3V and 5.0V components and b) to reduce long wire run issues on the I2C bus by effectively putting each Nano on a separate bus with its own pull ups.
The Teensy also handles all of the Panel switches through a 16 way multiplexor. That just leaves a single rotary encoder (the altimeter barometric pressure setting) to be handled.
Note: The primary flight controls, yoke, throttle et cetera are not part of this initial project which is to create the instrument panel. I may just use a Leo Bodnar board to handle this (and I could also move the switches over to this ).