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Metal Slug 3 was released on Steam on February 14th for $7.99.
It has online co-op, a scanlines option, and you always have twenty continues.
The performance and stability of the game is pretty shoddy right now, especially the online co-op. In a 30-minute session, you'll have major frame rate issues at least once, like where it drops repeatedly to 1FPS. For some people the game crashes. It's also not uncommon for two players to desync and travel to different sections of the stage.
All that said, it seems to work a majority of the time for most people, and it's a blast of course. There are a good number of people in the Steam community who are into not using continues, too.