I don't think we will be seeing a touch screen. I think this touch pannel is most definetly going to be some patch of plastic that is touch sensitive. I suppose it will be above the start/pause buttons. This would be similar to a touch screen except with this you get to keep the screen finger free but get the same function. Its like using a pencil device on a pad that translates the movements; or it could even be compared to a mouse. I like this idea cause there a lot of games on pc that use mouse functions very well. This touch pannel could replace the joystick. I just can't see a good, lasting joystick on a portable device. I hope the dpad is bigger than GBA and there better be four face buttons.
Why they are chosing a low poly rate is bogling to me when they could easily push at least Dreamcast level hardware at a low price and in portable form by 05. I don't want to play low poly games ever again. I will play beutiful 2d games, but 3d is best left to the consoles that can do things like cel shading and real time lighting. I was hoping they would just make Cube portable but the hardware just isn't there according to this new news.
Most discerning is that it really seems to be the replacement for GBA for 05 and not a "third pillar" of hardware used to make games better or easier to control. I could imagine the replacement for GBA as a controller for not only Cube but more so the N5 which means it needs a more shoulder buttons.
A microphone in my belief is a neccesary element. It does imply cel phone technology and even the ability of this machine to interact with other DSs, N5s, and network N5s and DSs by sharing the wieght of the signals being sent in a "Cell" technology structure. I was expecting it to use addons like cameras, mp3 players, and cel phone anntennas; but I didn't think they would build in a mic. That's a

Sega has been into the whole mic gaming for a while and recently had some new info on how they will use the variances in the voice to animate the face. Thus there is no need of a camera being built in or added onto the controller to trace facial expressions or likenesses into the game. Though a camera or several cameras would be cool features to work directly with the console rather than the DS.
If the hardware is able to play a movie, then why not allow the gamer to do it. Especially when it is cheap and encouraging to the consumer for them to be able to watch a movie on an air plane through their DS in the privacy of their Sony head phones. Maybe this could require an addon, but I would rather have two versions of the system on the market. The game device and the all in one. Or at least the one and a half.