Touchscreen-panning will be a new feature of Windows 7, it allows you to move objects on a desktop with your own fingers. Touchscreens are quite common, especially since the IPod, but to see it on a Windows PC is quite impressive.
According to this source Windows 7 will support this technology system-wide, all internal applications e.g. the Windows Explorer will therefore support it. I am convinced that mouses will never disappear from the market, but touch screens have their own advantages and provide a lot of flexibility.