The multitouch UI, however, has never been done before. Touchscreens (and worse, styluses) have been around forever--just not done well. Flick-scrolling, pinch scrolling, etc.--not to mention having the iPhone/iPod Touch's really LARGE screen in a very THIN device, are unprecedented.
Note--the device you show doesn't compare well to an iPod Touch: it's more like the new Nano. It has a 2.2" screen, barely larger than a nano, but the front surface size is larger than a Nano too. And it's
twice as thick as a Nano (old or new).
Yet the nano, with half the physical size and almost the same screen, gets similar battery life (24 hours vs. 25) and costs $40 less.