I love the idea. The haptic feedback sounds like technobabble, but if it provides information to your thumbs, like Braille letters, then it's pretty revolutionary. Also, my first impression was "WHERE ARE THE BUTTONS", but then I realized at least 8 buttons are right beneath your fingers at all times (4 shoulder + 2 back + 2 trackpad clicks) with another four (ABXY) just by the trackpads. In a typical controller, you'll get less immediately available, and you'll have to let go of the sticks if you want to access more. Thank Christ somebody finally realized I shouldn't have to use my thumbs for every action if I have 8 more fingers gripping the controller.
As for the "trackpads are always bad and clumsy", I don't think Valve would promise, erm, "higher fidelity input than has previously been possible," and then deliver cheap laptop trackpads from the previous decade that everyone hates.
In any case, I appreciate the attempt, even if it turns out to be unplayable.