Not sure what you meant with the first line. I agree with the other stuff you said, and thought similar things, notably your last sentence and the screen typing. I actually questioned the idea of having a screen in the controller, but couldn't come up with a better option that would allow for the same flexibility and ease of use when swapping between devices or software. I was thinking a lower power display, like eink, really basic low res (so not as nice looking) mono lcds, or even the segmented displays I can't remember the name of (along the lines of digital clocks or microwaves, or if they can do without an illuminated display, the kind on calculators or cheap digital watches).
One thing they seem to have done right, at least on the prototype, is a non-slick surface. I would prefer a rougher texture, but that is personal preference. The button layout is kinda the de facto standard layout for the last decade or so, but some older consoles don't seem like they would work well with that, especially N64.