Actually I saw a video a guy testing the Zelda tech demo and showed that the controller is multitouch. (Well, he was touch 2 different points at the same time and the controler recognized)

the link was posted in one those thread about wii U

The problem is that standard controllers don't have a lot orf expensive parts and they already retail at 50-60$ and I can see the cost of LCD screen, touchscreen and processing of the image adding easilly 25$ to the manufacturing cost. And Nitendo being Nintendo, they won't sell them at a loss.

Take a standard controller that cost at best 25$ to produce  and sells for 50-60$, this controller will cost 50$ to manufacture and will probably sell for 90-100$ ( retailers won't give up their margins on accessories either..).

At the minimum you have to take the production cost and add a 30% margin for retailers + whatever margin Nintendo wants to make on the controllers..

I forgot to consider the possibility that this controller will only be sold bundled with games ...

Much like Wii Play, I could see Nintendo bundling some of their prototype and demo games together and packaging them with this controller and selling it for $79 to $99.

Now you may be overestimating the cost to produce standard controllers as well. They are high margin items as controllers have typically been. The Wii Remote for example, cost something like $9.83 (iSuppli) back in 2006.

With the additional components, I'm guessing the iSuppli estimate on each will be just under $40.

Since it sounds as though Nintendo isn't going to be trying to sell every Wii U owner 3 extra LCD controllers (if it only syncs with 2 controllers) they won't(can't) be relying upon Wii U controller sales to inflate overall hardware margins. Barring the occasional "oops, broke my controller" replacements, they'll only be selling Wii U owners one additional controller max.

That's exactly what I was going to point out, but you beat me to it. 

The Wii remote and nunchuck together were under $15 for Nintendo to manufacture.  Sure, Ninty loves their profit, but $79-$89 for the Wii U controller seems pretty logical to me... and the success of the balance board has proven that consumers are willing to spend that much.

Even if Nintendo won't be relying on high margin, most retailers will be expecting to have those on this kind of item.

They already agree to sell the consoles with a low margin , I somewhat doubt they will agree to low margins on controllers too...

I could be wrong but my guess is that in the end the new controller will cost more than a balance board to produce so that gives it a good idea for a target price. Now like some said, Nintendo can always sweeten the deal by bundling a game..

Isnt there also a camera and rumble as well

If you don't want to take a stab at about how much the camera costs in the Wii U controller, I'll tell you right now that all three cameras in the 3DS cost under $5 (iSuppli). All of the components in the Wii Remote (and the shell) total less than $10.

Nintendo will sell it for as much as they can, im guessing it will $99. After all of this fuzz about might not being able to support 2 controls, i certainly doubt it will support 4. As a result having to pay $99 to complete the experience is relatively cheap (if you already have wiimotes/GC/classic control).

I wander if they will release another controller down the line with a better display?

My guess is that, like the Wiimote/nunchuck, the balance board's price was pretty high compared to what it cost to make.  I agree that the Wii U controller will likely cost more to manufacture than the BB, but I imagine that $89 would be a good target.  Definitely not more than $99 at the absolute highest.

Either way, bundled software is almost a guarantee; something that requires two Wii U controllers to play.