Doesn't look like a "huge part" of the display would be covered by hands.
Not saying that this "leak" is true (actually after the guy stated that the footage in the screen is taken by a game, when we know it's from a UE4 tech demo, i'm even more convinced that it's a huge fake), but a concept like this wouldn't necessarily be nearly as bad as many people in this thread decided it would be.
And then there is the fact that even if it's true, the thing in the picture still wouldn't be the version sold to customers, which makes the overreactions even more baffling.
Maybe, but i think that something like this would be better suited for a portable. I'm still having doubts about using touch buttons with a home console, where you look at the tv screen all the time.