for small devices half the appeal is that you don't need a big fucking rectangle taking up space on the device.

Personally i think a GOOD trackpoint (one that isn't miserably stiff, and is well-calibrated) plus a touchscreen is perfection for something like a laptop. The trackpoint lets you do most things without taking your hands off the keyboard, and the touchscreen is a touchpad but.. Borderline objectively superior in every way.
Like.. There's a reason phones have touchscreens, the idea of using a phone with a touchpad is insane.