CNetTV posted a video of a Nokia Research Center prototype being demoed at Nokia World in London. The device is controlled by how it's flexed.
The demo shows how intuitive and simple user interactions can be just by bending and twisting the device. It's a visionary solution that aims to provide speed and accuracy beyond the basic touch screen, not by replacing the touch screen as such, but as improvement building on the top of it. There are certain circumstances where touch screens may not be easily used, such as in cold outdoor environments, this prototype gives an example of an additional way to interact with devices in these conditions.