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Traditional Controller:

The button pads would face slightly inward so your thumb would be pushing more toward the back of your hand. The "shoulder" buttons would be under the handle where you actually grip the controller instead of way up in front.

Tthe d-pad, joysticks, and button pads be separate pieces that insert into the controller in any place letting you move them around if you're left-handed or shift the joystick and d-pad around if you're changing games and it would be more comfortable in a different place.

The buttons would be like the 360's 4 face buttons shape-wise to more easily feel that you're hitting the button. The d-pad would be styled akin to those made by Gravis for the Sega's Genesis 6-button and Saturn controllers. The joystick would curve in to better contain your thumb.

The controller would obviously be wireless but with a wired plug-in and a long cord so that you have your choice of either. The controller would also be released initially in a variety of colors and shells to allow everyone to customize their experience.