No question the controller will cost, but even "standard" controllers like Xbone can be expensive; MS said they put millions into design and the Elite pad costs a tonne.

The key will be if this NX pad drives up value as well as cost.  They say the Wii could have sold for $450 on launch because it was so saught-after.  If this slick, curved touch screen makes the NX seem premium to consumers and allow a higher price point, it's worth it. If not, it's an anchor.

Which, again, is absolutely silly.  Games are designed to keep the player character centered and in view. If they didn't, you would lose your character off the side of the TV.

The screen also has an extra wide viewing ratio.  So the area where the sticks are (also not the "middle" of the screen) is actually surplus real estate.

And finally, it's only relevant to off-screen play or if this is the handheld.  The main action is presumed to be on the TV :)

The problem all/most of this controller's benefits melt away if you actually use it the way it will be used in 99% of games ... imagine it resting in your hands, now look UP at your television. Now your LCD and all that is gone. You're going to force the consumer to keep looking down at the display to be able to see what commands they're pushing.  

Within 20 minutes, I think most people would be rather playing with this:

The aspect ratio is also very awkward, it needlessly chops the left and right corners of the gameplay area off and it doesn't even look ergonomical. The Vita shape would be much better, like this person mocked up:

https://www.youtube.com/watch?v=udkU101fFOk&feature=youtu.be&t=33

And how well has offscreen gameplay served the Wii U??

Also with buttons being onscreen, it'll hide parts of the screen which would be incredibly annoying. 

In thoery it can be an issue but in practice it can be a lot more simple as no game is going to have loads of situations in seconds of each other that will require multiple different layouts to confuse people like that, players will also be eased in and a game will likely have a few relevant set ups for it's experience. They will become familiar with layouts of situations by the time the game gets going, for example in a shooter players will be made familiar of layouts of when you're in and out of cover, if an extra input comes up in a situation it would likely be right next to another relevant input to make it easy to memorize for the situation, that's when muscle memory starts coming into effect.

And what happens if you remove your finger from the screen or it slides out of the position while you're looking at the TV? You can't "feel" your way back the way you can "find" a button without pressing it.

I don't see it working out too great, that said I doubt Nintendo is stupid enough to really make this haptic buttons thing the standard. You'll be able to get clip on buttons (physical ones) I'm sure or something if this is what they plan on doing. 

Yes the players character is centered, but the target may not be, and to see an enemy with a thumbstick in the middle of their head would be utterly rediculous, hence why none of the screen is surplus real estate. 

Hence the positioning of the analogue sticks, the buttons will no doubt be situated around them which will help you find the desired input much like the F and J keys on a keyboard have little bumps on them to notify a person what key they're touching so they can navigate to the desired key with out looking.

Example, Button A is directly left to the Right stick, Button B bottom left, Button C directly below, D is top left.

It will still in a heat of a fast paced game lead to missed button presses IMO.

This is really about flash over function. Even for "casuals" it's going to be hard for them to play if they have to keep looking down at the controller to be sure they're pressing the right button. 

The bottom line is for a controller that's going to be used primarily as the player is looking away from it, a controller without physical buttons is just from a practical sense inferior to one with physical buttons, yes even for newbies. 

The screen ratio is terrible for off-TV purposes too.

Or the new analog stick can work as a dpad.