Yes, it's still weird-looking but the Steam Controller is coming along. Particularly when compared with its original, intimidating version which you can see side-by-side below.
We knew a redesign was in the works, but this iteration looks much better than its mockup. As expected. Adding those eight buttons in the standard diamond pattern was a good compromise.
Valve says it's bringing the latest gamepad prototypes to the Game Developers Conference in San Francisco next week, so be on the lookout for updated impressions.