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I measured the face on the Wii-Mote.  It's almost 6" across diagonally, as some rumors state.   Replacing the face buttons with a tactile, multi-touch screen (assuming it works well) would be genius because it allows game designers to go in either direction of simplicity or complexity.  

The downside is battery life & cost.  Also, it spells trouble in handhelds once the tech makes it's way to the iPhone.