The Sony IP Music Player has touch capabilities but not in the way you might have guessed. In fact, it's rather retro and looks like a toy or game straight out of the 80's, but it's still pretty cool to look at.
This device was designed by Eijiro Mori and Takuo Ikeda and it has touch unlike any other. You place a stick in different spots on the player's surface to create different sounds and animations. Just from the pictures, it reminds me of the Lite Brite I had as a kid.
There is another version of the IP Music Player that reads virtual files that you place on any desktop. Cool stuff but definitely outdated. Perhaps that's the point. At any rate, don't expect to get your hands on one soon as it's only a concept.