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I think its a waste of space on the incredible, i have never used it.
Never use it on my Incredible either. I'd rather have the front facing camera taking up real estate on the phone.

I only used my optical trackpad if I had to get in between 2 letters. I assume I wont have to worry about that on the huge screen of the X.
Even on the Incredible I still was able to use the touch screen to fix mistakes. I guess it is all about personal preference.
Maybe Android could learn something from the BB Storm. On the Storm, when you click the text, it shows the cursor with two "handles" on either side that you can use to drag the cursor to wherever you want. It works pretty well.I could do that but it was annoying when I couldn't get it to just the right spot.
I think its a waste of space on the incredible, i have never used it.
I saw a video review of the Droid X and one thing that looked cool was a very iPhone like "magnifying glass" for text selection.
As far as the dpad/trackball goes, Ive used it maybe twice on my Droid and I never even bothered with it on the Incredible. It may have been nice when Android was just coming out but it's not needed anymore with pinch-to-zoom I'd say. Games... perhaps but I think we're going to see more manufacturers get away from dpads and trackballs except on QWERTY phones.
I think its a waste of space on the incredible, i have never used it.

Even on the Incredible I still was able to use the touch screen to fix mistakes. I guess it is all about personal preference.
Mine are blunt.