The DX7 was designed to be a gig-able synth that anyone could throw in a car and set up on their own. It was a brilliant success because you had good-enough epiano and other stock sounds in a package that was far more portable than a real epiano, clav, basic poly, etc.
This was purely a cost/weight issue. The hardware required for one-knob-per-function would have doubled the weight and probably tripled the cost.
E.g. a company called Jellinghaus made a full-sized analog-style programmer and it was bigger than the DX7.
https://www.matrixsynth.com/2008/01/jellinghaus-dx-programme...
People like analog synths because they have a very simple programming model that only makes a relatively small range of sounds, most of which sound good more or less by default. You trade immediacy against sophistication.
The DX7 etc went the other way, which infuriated musicians used to those analog sounds, but created an entire support industry of sound designers and libraries.
If you want a tactile UI now you can create one on an iPad. The surprising thing in 2019 is that synth designers still haven't fully explored touch screen interfaces, and are mostly just recycling ideas from 30 years ago.