You are viewing the 'need' from the end user perspective. That is likely not the driving force that is causing touch screen proliferation.
The likely driving force that is causing it is the manufacturers BOM costs.
A single, rectangular, touch screen, that can swallow up a bunch of different knobs and buttons and basic displays, is likely cheaper from an overall BOM perspective than the set of knobs and buttons and basic displays (and supporting material (mechanical and wiring) for those knobs/buttons/displays).
And, if two (or more) different car models use the same size rectangular screen, then one single "screen" can be used for plural models (with only software differences) vs. the need for unique moldings/buttons/etc. when providing the physical knobs and buttons on different models.
The touch screen also enables different "accessory classes" even within the same model by a software change vs. a different piece of hardware. Think basic hot/cold/manual blower speed climate control vs. higher end climate control where you set a specific temp and the system picks heat/cool/blower speed. The same single touch screen can provide both the 'basic' and the 'luxury' interface via a software change vs. two different physical control units inserted into the dash.