it has 2 analog sticks
1 on top left and 1 on the bottom right
Directional pad on bottom left, and the 4 buttons on top right.
screen is on top of the buttons, and it has the 4 buttons on the back.
i wondered the same thing too
i even did some research on it a little while ago
microsoft doesn't want to be known only as video gaming
they are looking more toward being recognized for their music industry
it was released that if they did ever make a handheld console it would be more focused around a music player, like a zune but also have a gaming platform on it