The touch bar is a very flexible (effectively) analog input + rich display device. If adequately supported by software it can be an amazing input, affording a range of useful functions not replicable with discrete buttons. In general, I really wish modern computers had more analog inputs available. Analog knobs, jog wheels, sliders, trackballs, etc. are tragically missing.
I have seen no evidence that Jony Ive was its patron, and no evidence that including it had anything to with making laptops expensive as a goal.
The problem with the touch bar is that (a) it only shipped on a limited subset of devices so software authors could not depend on it, (b) after its initial functions, Apple made limited effort to adopt it in all of their own software, improve its integration into the system, or push boundaries of what it could do as an input device.
> The butterfly keyboard was Ive shaving off 0.5mm of the width for a worse user experience with a higher production cost and less reliability.
No, this was some Apple-internal mechanical engineering group trying to design the best extremely thin keyboard they could, but getting bitten hard by a mismatch between reliability in a prototype vs. full-scale factory production + poor estimation of reliability in a wide variety of contexts over a longer period of time. Nobody ever set out to make a “worse experience” or higher cost.
There are many suboptimal features of the common rubber dome + scissor stabilizer laptop keyboards, and I wish more companies were brave enough to experiment with alternative designs in search of improvements. (Disclaimer: my favorite "laptop" keyboards are https://en.wikipedia.org/wiki/IBM_PS/2_portable_computers and https://en.wikipedia.org/wiki/Macintosh_Portable)