Microsoft Research works on all sorts of features and offerings that often never see the light of day. The company is showing off a new input method using pen and touch that it calls "Manual Dexterity" that looks promising.
Today most devices can either accept input from pen or from touch, but not both. The new Microsoft concept does both and the combination works very well.
I can certainly see this input being used on future machines. I like the demo of the person moving things around with their hand while writing on things with the pen, it's cool. Check out the video below.