The way I read that (I could be wrong
, correct me if someone knows for sure) is that it will not
have touch screen hardware, but the analog nub will be sending out signals as if you were operating a touch screen analog stick like the ones you see on other systems with touch screen analog controls (i.e.- tablets).
So the system will trick the emulator into thinking the touch screen analog stick is being used, when it's actually a physical analog stick. Pretty clever.
Edit: Also, yes, I do see that we don't have playable true analog yet, whomever Qbertaddict was chatting with (It sounds like GCW, since he decided if Q could release word on the forum, but not enough info to say that for sure) is going to start making the driver. I'm wishing them the best of luck on this important task.
Poor guys, I was hoping now that it seems production is going into full swing you would be able to take a breather while we all wait for the finished product to arrive. It's a blessing and a curse to know you have a hack-friendly platform with near endless development potential, just as you will soon be cursed with my endless requests for a Hello Kitty OD theme.