http://www.japancorp.net/Article.Asp?Art_ID=15247

Sharp Corporation has successfully developed a new System LCD equipped with touch screen and scanner functions. An optical sensor is built into each pixel of the LCD panel, eliminating the need to bond a film to the panel for touch screen functions, and providing beautiful images without losing display image quality.

They only list a 3.5" screen with 320 x 480 resolution. I'm sure bigger sizes and better resolutions will eventually come about.