I surely hope not. I don't want a controller with 2 analog sticks, a touch screen, a camera, plenty of buttons, and maybe even a stylus. That's too much. It would be way too expensive, not to mention overwhelming Imagine buying four of those so you could play with your buddies on your couch. I doubt the controller will have a touch screen. I think that would make the controller too expensive. I could be wrong, thought. I also think that the in-game use for a camera would not be worth the extra cost, I can't think of many things to do with a camera during games, except maybe video chat.

This super complex controller is sounding like it would suck up battery life insanely fast.

Now that's a good question! It could help mitigate the "bad looks" of old games on those HD screens.

Besides this, the screen could have a lot of different uses:

• RPGs: the inventory. Just a look down to see what you have, and if it's a touchsreen just a press to use a potion or to change weapons
• Sandbox games: Map. While big maps are a blessing, they can also be a PITA. What happens when you have to find something/someone that's at the other side of the map and moving? Play, pause to check the map, play again, go to the map to see where it's going, play... With a map in the controller it'd be as simple as play, look down, play, etc. You may even be able to use zoom to check for secrets (the chests of Assassin's creed, for example)
• Racing games: Stadistics. You could have displayed your position and the distance to the other cars. Or the damage of the car and tires. 
• etc.

By the rumors, actually not. Because seems the controller won't have any processing unit, it will just stream the video from the console and been unable to render anything by itself

i heard the controller has buildt in thumbs to eliminate the need for these annoying gamers!

Every console already has a can holder! The real change would be to be able to use it also while playing games and even with the console kept vertical!  O-)