your still going to have the issue of having binary and only 1-dimensional tactile feedback.
compare that to even the ipod interface where when you are running your finger around the wheel, you have the boarders to the circle to assist in positioning and the interface inherrently requires you to look at the screen as there is too much information for you to remember. That is not the same as with a telephone. How many telephone numbers do you type in manually as it's quicker than finding it in the address book?
I am not saying this isn't a step forward. The demo videos look good, but not in the way that it removes the problems with standard touchscreens (lack of tactile feedback).
Apple has this much vaunted reputation of making great UI's, personally I'd say it's 50/50. The mac is a disaster, why oh why would you disconnect the menu bar from the application so that you have to return to top left each time to use the menu bar.
The apple newton could be said to be a disaster, ahead of its time or just being too adventurous, in any of those situations you could say it should have stayed as a demo/concept or in the labs.
However the Ipod is fantastic to use. OS X looks amazing and is very slick to look at, and you do get used to its quirks...
ok, I'm ranting... Apple is the tech industries blue eyed boy... and I'm not going to change that view
Rich