While I have nothing to do with the video or project, I would say that there are practical limitations for how small/dense controls can get. However after a quick glance, if you were to fit the interface onto the surface of the Morph, and the controls weren’t too dense, I don’t see why not. The nanoKONTROL2 looks to only use buttons, slider, and knobs. Buttons are already a thing. Sliders too. So I think the only thing that might be new-ish would be the knobs. And those could probably be done with just having the knob rotate a disk with particular bumps on the surface of the Morph.
For example: