Hmm. The other feature rumours just sound like a generic tech upgrade, and something a little questionable (screen in the controller).
But, if this rumour is true, it could be a major step forward in terms of moving the sense of touch to a much higher level. (Rumble/force-feedback is the only prior gaming examples).
I really wouldn't discount the significance of making major inroads into introducing the sense of touch to games.
And if this is in any way related to toshiba's tech, then it could be applied to parts of the controller other than just the screen. (And it works on curved survaces)
If the controller has the shape of traditional game controllers, imagine this stuff covering a large part of the grips you use to hold the controller...
That would mean, even without involving the screen, or motion controls, or any other non-traditional gaming mechanics...
You now have the prospect of some sense of touch across large parts of the palm of your hand and your fingers.
If people are really so cynical as to imply that is meaningless... Well, I'm afraid you're going to dig yourself in to a very niche concept of what a computer game is.
(specifically, you are implying it's current form as a purely vision & sound based concept is all games ever will or should ever attempt to be.)