port over fully functional Xbox 360 titles to handheld at minimal expense
I take it MS were unaware of the train wreck that was the PSP then.
Assuming that this means "proper" 360 titles and not the indie or arcade stuff then....no, this will not work, Sony assumed there was a handheld gaming ghetto and decided to bring PS2 style gaming to the pocket generation, it didn't work because handheld gaming needs to be treated as something else entirely, something Nintendo understood.
If Microsoft wants to enter the handheld wars then it needs to set up a completely different department for handheld gaming, if they just want to port over their 360 library it simply won't work for the variety of reasons the PSP didn't work.
Also touch screen emulation for 360 controls....it's almost as if MS are trying to fail with this.
You know, Hitler wasn't all bad, after all, he did kill Hitler.