i've binded everything in blockland to a controller in the most comfortable way possible and it was still awful. Blockland has no purpose to be on a console unless you want to use a keyboard and mouse/joystick/whatever, but at that point you might as well use a computer. Blockland can run on any computer on the market right now, so there's no reason or need for it to be ported onto PS4/XB1.
Would the torque engine even be compatable?
As far as I know it is. Marble Blast Gold/Ultra was made with Torque and it was on XBLA, unless they remade the game in a different engine. But then again, that was the Xbox 360, I have no clue if there's an engine compatibility difference between consoles.