Obviously yet another 'leak', that was actually planned by Sony, they just take a poor quality photo of the device to make people think this is really 'top secret'.
Anyway, I think it looks lame. Hopefully, the OS, games, specs, etc. will be better. The PlayStationPhone looks great though. And yeah, they apparently swapped the analog nubs for trackpads.
(Funny anecdote: engadget first reported of the PSPhone and said it was real, then apparently a Sony executive told them it was fake, but a couple of hours later it was real again. lolwut)