I think it's fairly obvious that a lot of the rumors about the controller are conflicting and simply untrue. 6" HD screen? Not even the iPad's got that, AFAIK. I don't doubt there'll be a touchscreen, but 6" is remarkably large, and that it'd be HD is outright laughable.
Really, I don't know what to expect from the controller... maybe the rumors are true, but I won't outright believe them until early June, which is still like a-month-and-a-half away.
I'm more interested in the rumors that the console is a friggin' beast that handily outperforms the 360 and PS3 - a remarkable turnaround for a company who, while typically prone to this kind of stance in a generation (Super Nintendo was generally prettier and more aurally pleasing than the Sega Genesis, as nice as FM synth can be; the N64 had bilinear filtering, anti-aliasing and a lack of texture warping in its 3D games over both the Saturn and the PlayStation; the GameCube was generally more powerful than the PS2, but wasn't quite original-Xbox-level graphics), did a complete 180 this generation and deliberately went cheap to appeal to a broader spectrum of gamers, and handily succeeded as such. If you can handle proper polygon-based gaming at 1080p proper and 60FPS while still looking as good or better than the PS3's output, we have a winner. Considering the rumored video card of a Radeon HD4870x2, it's actually slightly better than my PC's current video card of a Radeon HD5870, and that card's pretty good at meeting the requirements I'd mentioned.
Really, if Epic shows up at E3 and showcases Unreal Engine 3, then I know we've got a winner here - considering the huge chunk of games which use that engine are now open to a Nintendo console.