I just don't see how they are going to attract developers to make games for this. The GP2X suffered similar problems.
Sure, this will attract emulator crowd but why do I need a separate device for that when my smartphone will do it (there are even emulators running in javascript/html5 which circumvent any Apple iPhone store issues).
There are a lot more classic console games that use a rocker and a/b buttons than ones that use multitouch. (This thing is targeted at emulation, remember?)
The same people are also working on re-using much of the hardware designed for the Pandora (the analog "nubs" are said to be very good) in a device called the iControlPad. See http://icontrolpad.com/.
Please note that the current hardware to uses Bluetooth to interface with the phone, rather than a physical connector since there seem to be licensing issues with that on (many/all?) of the Apple devices. Here's some video showing the iControlPad connected to a PC and used to control a game of Quake: http://www.youtube.com/watch?v=Gg7AtVuMqZU&feature=p....
ObPandoraJoke: I'm expecting my Pandora in two months, tops.
Sure, this will attract emulator crowd but why do I need a separate device for that when my smartphone will do it (there are even emulators running in javascript/html5 which circumvent any Apple iPhone store issues).