Sharp announces a new touch-screen LCD display for portable devices that has sensor elements inside each pixel.

Supposedly the display can also be used as an image scanner and the image quality is improved as no additional film on top of the display is necessary.

The new Sharp display is 3.5 inch in size and features QVGA resolution.
Of course the new display supports multi-touch. Sharp is supposed to be one of the suppliers for the iPhone touch-screen. So expect Apple to deliver their next generation touch screen iPods or iPhones with this new display.
Sample shipments for this cool new touch screen display start in September.
Via this Sharp press-release (Japanese).