Is it possible, assuming real of course, that the controller's grips are removable - and if so, could it be held vertically to function similarly to a remote or something?
As far as screen spacing and analog sticks getting in the way... I wouldn't discount the thought that the console is still going to plug into the TV, after all. Most of the action should be taking place on your TV, not the controller, but the controller's screen is what allows for custom button mappings and allocation.
Finally, if the virtual buttons use advanced haptic feedback or braille tech, this actually may not be so bad:
https://youtu.be/bZq3bCGlrjA
https://youtu.be/0fIg4rI4cDw
Now, considering the fact that would probably has a gyroscope
on top of that, this is looking to be one expensive controller, and I'm not a fan of that prospect. It looks like a nice piece of tech, but is it worth the risk? Not right now, it isn't.