The newest, and third, version of Valve’s Steam controller includes an analogue stick - bringing it closer and closer to a more traditional concept.
Valve’s initial prototype was revealed in September last year and included a touchscreen, and placed the ABXY buttons around it.
The second prototype was shown off in January this year, removed the touchscreen entirely, and placed a d-pad and buttons in more traditional locations.
Every time we see the Steam Controller it gradually moves towards a more common convention, which is no bad thing - if it ain't broke, why fix it, and all that. Personally I’d prefer a couple of analogue sticks on the controller, but my only real experience with touch controls is on tablet devices, and I just don’t think they work well - perhaps the Steam controller could sway my opinion?