I think they were showing this a year ago at CES if I'm not mistaken. It looks so cool.
I've seen it on the web a longer time ago than that.
The buttons are fixed, which negates the point of using a touch screen.
The buttons are convex.
The buttons are rubber domes...
If the buttons have a fixed layout, then it would be better to have a passive keyboard with buttons pressing the touch screen, like the Sony P380 phone. That would give a better feel - proper buttons, which can be concave.
But then you could just as well use an external keyboard, which would give you more screen space at the same time as you are using the keyboard.