I think you guys are being way too narrow minded about this whole controller thing.
Nintendo's new design is by far the most flexible. The ability to plug add-ons into this controller can be used in a number of interesting ways.
Imagine plugging it in to a steering wheel, a baseball bat, or a fishing pole type peripheral. By adding the new controller into any one of these designs, you get instant first party controls and novel ways to play games.
You also have to remember that Nintendo's "Revolution" is not really aimed at gamers like us. They seem to be going for more casual gamers.
A lot of people are intimidated by a controller with 2 analog sticks, a d-pad, two triggers, two shoulders bumpers, and 7 face buttons. Those that are familiar with modern games are perfectly at home using a device like this, but those who are not gamers usually take one look at the controller and turn away. Simple can be better, depending on the situation.
I see their strategy as more along the lines of what they did with the original NES. Simple games that anyone can play. They are looking to take in a new generation of casual gamers who are uninterested or intimidated by the current state of video gaming.
MS is doing the same thing, but on a more conservative scale. The "Core" sku and xbox-live arcade are both aimed at more casual players. Nintendo seems to have embraced this idea whole-heartedly and their controler reflects this.
After seeing what Nintendo has to offer, I have definitely decided to get a Revolution. If they launch with a cheap price, it will definitely be a success.