Although I like the idea of using the touchscreen for gaming on a mobile device, I don't think Sony would want to use the touchscreen too much. Well apart from its phone functions anyway. That is because they will give the device dedicated gaming buttons instead of a keypad, and will probably make content tuned to the gaming buttons (and hopefully those two beautiful optical trackpads!).
@strategy (Nice nick BTW )
Pricing should be around $500 approx. unsubsidized. This is as per the pricing range of all most of the high end phones released in 2010. Also depends on the type of service Sony goes with, which will get it down to $200-300 with new contract.