Sounds pretty fake to me.
For one, a touchscreen controller just sounds like the dumbest idea ever, to me.
Now I could be proven wrong (if this ever comes to pass) but having a second screen on your controller would be WAAAY different than the way the DS works. For starters, the DS screens are close together, so its easy to see both and quickly switch your focus between the two. But I doubt anybody holds their controller under their nose while playing console games, so it'd be a whole lot more inconvenient to have to constantly turn your head away from the TV to check your controller.
And its not even like you could set up your fingers over the right spots and not have to look,like on traditional controllers, because unlike normal controllers with buttons you can feel, a touchscreen is a single flat surface. Without any landmarks to give your fingers any bearings, you'd be constantly hitting the wrong things.
All in all, its completely impractical.
Secondly, how's something as big as the controller described going to be able to work like a Wiimote + nunchuck? Doesn't seem at all possible.
And that's just the problems with the controller.
Those specs are TERRIBLY low. My computer is a hunk of shit, but still has way better specs than this supposed "console"
At this point, I'm extremely skeptical. Sounds more like an ill-thought-out fanboy's dream than a real piece of tech. I guess we'll just have to wait and see.