It looks terrible. It literally looks like nothing more than what it is - a cheap plastic knob glued to a touchscreen. Made to look even worse by having an empty center exposing more touch screen.
Add to that, I don’t see any reason why a volume knob is any more or less deserving of a physical control than climate controls or radio station presets. That is to say, volume controls are plenty deserving of a physical knob, but so is everything else you might do in the center console with similar frequency.
Which is to say, further more, that they are admitting that physical controls are better for frequent adjustments like volume, but instead of handling that properly, they’re just saying “here’s a big touch screen for everything... but we’ll relent and give you this lame ass pasted on knob for volume and volume alone”.