Alright, now that I'm home and on a computer that can see that image of the new Classic Controller (I guess my work's firewall blocked it), I like this new design a LOT. It basically fixes 3 out of the 4 things that really bugged me about the original design:
1. The cord now sticks out of the top. Oh happy day.
2. With the prongs now on the left and right sides of the controller, it won't be so incredibly awkward to play games that use the 2 control sticks...not to mention hand-cramping. After years of playing 3D games with controllers like the GameCube controller and dualshock, it just feels wierd for both my thumbs to angle DOWN to use both sticks...not to mention having no good place to grip to the controller when you do that. With the new grip prongs, though, I can more comfortably grip the controller and slide my thumbs UP to use the sticks. That makes a world of difference.
3. The really tiny LZ and RZ buttons, which feel really wierd to push in.
The remaining issue being the rather floaty (compared to the GameCube controller and Dualshock) Analog Sticks. I hope that's fixed in the new design as well.
You know, I half-jokingly suggested the Dreamcast-to-VC possibility, but you have to admit that's not all that unlikely with how cozy Sega's been with Nintendo since they turned 3rd party. Besides the storage issue, though, the biggest problem I could see with them doing that is that most of the games worth playing on the Dreamcast have already been ported to other systems, including the GameCube. Skies of Arcadia, Resident Evil: Code Veronica, etc. I know that's never stopped Nintendo before when it comes to the VC, but it could be a factor.