The controller isn't what you guys are expecting. I was thinking the same thing and was pretty disappointed that it would pretty much kill being able to play older console games.
However, the more research I did, and the more interviews I read about indie devs trying out the controller, the more I realized I was wrong at how amazing this actually is.
They aren't track pads, they are haptic pads. Basically it uses electrostatic to trick your fingers into thinking you're actually feeling a different surface, curve, bump, whatever. It can even fake your fingers into thinking it's a moving trackball. So if you spin it, it moves and slowly slows down, even though when you look at it, it's just a pad.
Basically, you can program any menu, any game, or whatever to have a different layout and expect a different movement. So you can create a Super Nintendo button layout, Gamecube layout, etc, and have it expect you to press down on specific locations while those locations feel like buttons that are expecting a push action.
I hope that it is as good as it sounds because it's one of those things that you just have to try to understand. Here is a video demonstrating the same technology on a flat screen tablet.