Buttons in the car tend not to be as bad if it is your car you know where they are and little brain resources or eye movement are require to use them. This touch screen and menu BS, well that is a problem for distraction just as bad as any phone... Sorting through a menu on the touch screen to adjust as an exmaple the heated seats on some cars, WTF!
Yeah, give me hard buttons and knobs any day over soft buttons on a touchscreen.
Bought a universal remote control once with a touch screen, and the interface changed depending on what you wanted to control: amp, TV, DVD, CD, cable box...
Used it for a few days and then it quickly found a new home inside the cupboard drawer.
When you're watching TV, the last thing you want to do is have to take your eyes off the screen to have to mess around and fumble around with a touch screen. Yes, it did have hard buttons for volume +/- and channel +/-, but if you wanted to skip to a specific channel or control a different device, you'd have to refocus on the remote instead of having tactile buttons your fingers can find anytime.
Same in a car, I also prefer knobs over +/- buttons for when you're setting cabin temperature or stereo volume. One quick turn vs several button presses is so much easier.
Sometimes it seems like aesthetics have won over practicality.