I think the controller could be amazing for customization of inputs. It could be an NES pad, a Wii Mote or something totally new and unique for new games. It could become guitar strings, a slingshot, or just three big buttons if appropriate. Combined with it's state-of-the-art look it could be quite impressive. Assuming the "buttons" actually work well in place of real ones.
There is also the potential for fantastic local or local+online multiplayer if you can have more than one of these things connected at once, or if like I said above the NX portable is essentially the same as this device.
I agree the cost could potentially make it more of a drawback than a benefit, and I'd rather money be spent on processing power. If the system it comes with has impressive power, the controller could be interesting.
