Very awkward placement of the analog stick - you can use either the stick or the buttons, never both at the same time. I don't believe any of the mainstream handhelds or console controllers have had this arrangement, probably with good reason.
Our design feelings were that the camera/look controls (right analog stick) generally need to be tighter than movement (left d-pad). Almost every standard controller places buttons on the same side as the camera/look analog stick. We would, though, still like to provide analog input for directions, too.
Yeah I rewatched the sections with the guy playing it and it seemed the hand positions weren't comfortable. But hard to tell with the shots in the video and without getting one's hands on it.