2. It looks like the pads are "pressable", so whilst they can react to touches, you can configure them to only react to presses. Not quite the same as buttons, but it might be good enough.
You might be interested in looking at Tommy Refenes thoughts on his testing of the steam controller prototype. He discusses using it to play his difficult platformer Super Meat Boy:
http://tommyrefenes.tumblr.com/post/62476523677/my-time-with...