This isn't labeled porn yet? They'd obviously jump on it before anyone else.
Technology like this has the most immediate useful impact on Windows Tablet devices that are just the touchscreen and essentially no other UI. You could make a raised keyboard with the screen, which would really be best of both worlds.
The next step is a revolution in UI design. An alpha layer representing the texture of every UI feature could be part of every image displayed, and you could have an infinite number of interfaces that are customized to a particular task, but you would get the ergonomic benefits of a normal keyboard. For example, you could handle multiple languages more effectively by adding entire new keys to the on-screen keyboard instead of doubling-up and making it difficult to type common characters as is done today in many languages. Games could present a set of "keys" that are just the movement and action keys, clearly labeled as such, instead of WASD.
And of course, porn would run rampant, as always.
Since it's just a patent, presumably this technology won't exist for ages. My bets have always been on Apple putting this in a future iPad before anyone else gets to it - not a big fan of Apple, but their ownership of the entire technology stack and the premium price they can levy for their devices puts them in the best position to introduce something like this with the fewest hurdles.