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It seems in the end the Sony Ericsson Xperia X1 is going to be a bit like that character in Heroes which absorbs all the powers of the other characters. With the release of the WVGA HTC Touch HD, porting TouchFlo3D to the Xperia was a rather simple matter. Modaco has done a video showing the feature in action, and is looks pretty mood. Most striking is that the interface is still very smooth, and also works seamlessly with the Panels interface, meaning you can truly have the best of not works.
Porting Touchflo3D to the Xperia also fixes one of the niggles of the Xperia – no finger-friendly Soft Input keyboard.
The cab to make the magic possible can be found in this xda-developers thread.