The controller will indeed feature a touch screen, dual sticks, motion control, camera, sensors, and can play games on the controller.
The promotional video shown during Nintendo press conference has revealed that Project Cafe is actually called Wii U and does in fact contain many of the features leaked by 01net a while ago. The controller will feature a 6.2 inch touch screen, and will be fully compatible with all of the Wii peripherals. Players will be able to play games right on the screen, rather than needing to use the television.