Hmm. I like the idea of having bio-metric sensors in the controller as that at least has a unique, innovative aspect to it. I could see games taking advantage of your bio-metrics to change the way characters react to you or something. However, having an LCD screen in the controller just sounds like it could be a problem. Not in the sense that it would be fundamentally bad, but that it would create a problem for Sony in that sense that people would start jumping on them for "ripping off the Wii-U." It could be cool in practice if true, but I just see a Sixaxis situation all over again.
Also, I'd be disappointed if they abandoned the design of the Dual Shock. Personally, I think it the best controller on the market and the most comfortable for me. I've been using it for so long that the controller just feels natural for me; much more so than the 360 controller, which I like too. If they could add the bio-metric sensors to the controller and kept the design relatively the same, I'd be totally down with that.
Regardless, it'll be interesting to see how things pan out.