Sony’s touchscreens have always been pretty good. I have a DCR-PC5 MiniDV camera bought in 2000 that was one of the first Sony models to have a flip out touchscreen. Even for “old” technology like that, the screen is very usable outside in bright lighting and easy to use. It’s also pretty durable (mostly because it flips closed to protect the screen) too.

My main concern about the N1 would simply be scratching the screen. OF course, that doesn’t stop me from sticking my DSC-T1 in my pocket sans a case…