Hi Jim, maybe I can sketch an answer, assuming that I'm not doing something stupid. The question is related to another one on this toy, namely:
Why does the internal singular simplicial space realize to the same thing as the discrete singular simplicial set?Why does the internal singular simplicial space realize to the same thing as the discrete singular simplicial set?
By adjunction, your multisimplicial set has as its set of $(n_1,\cdots,n_k)$-simplices the set of continuous maps from $\Delta^{n_{1}}$ to the mapping space $Map(\Delta^{n_{2}} \times \cdots \times \Delta^{n_{k}}, X)$. As $(n_2,\cdots,n_k)$ vary, these spaces form a $(k-1)$-simplicial space, which I'll denote by $Y$. All of the terms of $Y$ are homotopy equivalent to $X$ since the simplices are contractible, and it follows that the geometric realization of $Y$ is homotopy equivalent to $X$. (See the question cited above). Your original $k$-simplicial set is obtained by applying the total singular complex functor $S$ to each space of the $(k-1)$-simplicial space $Y$. Realizing first in the first simplicial coordinate we are seeing the $(k-1)$-simplicial space $|SY|$, and its realization is homeomorphic to the realization you first asked about. Clearly $|SY|$ is equivalent to $Y$, hence its realization is equivalent to $X$.
Edit: Following up with Ricardo, the Reedy condition on Y should hold modulo the sort of elementary point-set topology that I won't look at in public (never was any good at it). Let's look at a degeneracy operator $s_i\colon Map(\Delta^n,X)\to Map(\Delta^{n+1},X)$ for simplicity. The multisimplicial case is no different. It is induced by a collapse map $\sigma_i\colon \Delta^{n+1} \to \Delta^n$ which is right inverse to $\delta_i$. It follows that the image of $s_i$ is a deformation retract of $Map(\Delta^{n+1},X)$. If there is a continuous map $u\colon Map(\Delta^{n+1},X)\to I$ such that $u^{-1}(0) = Im (s_i)$, then the inclusion of $Im(s_i)$ is a cofibration by the standard NDR pair criterion. Etc. The point is that Reedy cofibrancy is no big deal in the present context.