Giant hands?
No, it's just a really small camera.
Flash up
Pentax certainly makes an effort to get that flash as far from the lens as possible (to minimize red eye). The new dial is for quickly applying user-assigned special-effects filters.
Tiny sensor
Unusually, the lens contacts are inside the body rather than on/near the mount.
Q-to-K mount adapter
The new adapter makes configurations like this possible. This is a 560mm lens, which on the Q10 has a 35mm-equivalent angle of view of a 3080mm lens. That's basically a telescope.
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SD slot
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