OMG they still fucked up the controls. It reminds me of the Wonderswan, but more pointless this time around. Playing Pocket Fighter on a Wonderswan is tedious with that kinda control scheme (still doable though).
I had a Gen 1 (I sold it to get money for a laptop), and while I do miss it, the controller was always a limit as to how much fun I got out of it. You can "get used to it", but A) that can only go so far, since it's still crap to begin with, and B) you shouldn't have a stupid flaw like this for such an expensive device.
The touchscreen could be pretty cool though. I've seen some nice games on PDAs and the DS that are pretty good with using a touchscreen.
edit: BTW, I find it kinda sad that they tout being able to read comic books on a screen of only 320x240 pixels. You'll have to do a lot of scrolling, though I guess it would be easier with the touchscreen. Still, it's not that fun. I had some manga on my PDA (with a screen with the same resolution) for a while and ended up deleting it, since there isn't a good way to convey that much prerendered information on such a small screen.