Answering my own question: Turns out the old psmouse was in the
initramfs so running update-initramfs -u -k all and rebooting fixed it.

Also attempting to answer lohith's question: You have re-install the
driver for every new kernel until support is added upstream. Just repeat
the dkms commands, and run the update-initramfs command above, and you
should be good.

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https://bugs.launchpad.net/bugs/1166442

Title:
  Elantech clickpad/touchpad lacks multitouch features.

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