I'm in agreement about the rumours getting out of control. What started as one fairly standard rumour dropped by a magazine has exploded into all sorts of random details, a lot of which I believe to be hogwash. It sounds like either some fans are getting carried away with wishful thinking and actually posting these as rumours, or the big media outlets like IGN have seen the opportunity for traffic, so they throw out stuff like a picture of the Classic Controller Pro with a screen Photoshopped onto it.
My personal thoughts on the idea of a controller featuring a small display are mixed. On the one hand, it dredges up memories of Four Swords Adventures, a great example of how the TV screen-to-handheld screen dynamics can be done. On the other hand, this be expensive! Especially throwing in all the other bits and bobs we've heard about, plus it would kill the battery quick. That's why I'm sceptical about this whole thing being real.