The weird thing is that they could have added the touchbar and kept a full function key row and still have plenty of room for a good sized touchpad. The current Macbook's touchpad is arguably too large.
So having to remap ESC to Capslock and often hitting the wrong arrow key is a much too big drawback to a bigger touchpad
Imo, the touchpad on Macbook has always been its greatest strength and they managed to ruin it.