While that's a "rumor" page, the controller thing has been pretty much confirmed, and the backwards compatiblity feature looks almost certain...that is, if you have the optional hard drive. Still, this puts me a little more firmly behind the 360, regardless of the stupid name. Lack of XBox compatibility was a sticking point for me.
I love the fact that the controllers will work with a PC, though. As long as the controllers are fairly well designed, it means I can finally retire my 7-year-old Sidewinder pad.
I thouroughly enjoyed Dragon Warrior VII (for the PS1), but I'm one of those sickos who doesn't mind putting in 130-140 hours to beat it... which is what I did. It took me over a month to do it, but BAH GAWD when I was done, was I ever happy.