I can confirm that morphgear does not work on the imagio.
As for why we would want one...
The screen input isnt terrible by any means. (as long as its properly calibrated)
theres a number of ways around the "multi-touch" issue, including but not limited to an app that generates multi-touch capability on resistive screens.
http://forum.xda-developers.com/showthread.php?t=484555
we also have 5 hardware keys that could be mapped. and the volume toggle could be mapped as well putting us at 7. thats way more than needed for a controller.
ive got an app called dual touch that demonstrates the multi-touch potential on the imagio, i cant find the file right now but ill try to post it later.