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Yes, the touch screen controls have to be on the back.

Apple if I am not mistaken has a patent on screen touch controls. Sony would be looking at a multi-hundred or billion dollar lawsuit if they were front screen touch screen.

Here is the link on Apple acquiring the touch screen patent from January 26, 2009:
http://www.google.com/hostednews/afp/article/ALeqM5jxlJ5lpRZOi6UTNEitAwEgfopsVQ

Google "Apple patent touch screen" if the link scares you.