A tactile button has far fewer accuracy issues with positioning: if you can feel the button, you won't start pressing 2/3 off and then get further and further off until you're triggering something else, as happens all the time on touchscreens.
A knob provides a richer communication path between your brain and the device. With touchscreens, you can basically just poke and swipe, with some unintuitive nuances like long press or multi-fingered gestures. With a knob, you're using separate muscles and so can associate muscle memory based on the size, texture, and granularity of "click" feedback as you turn. We also have the ability to finely modulate the rate of twisting something—compare that to tapping frantically on a touchscreen left/right icon to control a quantity.
Knobs don't share space in our muscle memory with buttons. To some extent, different knobs and different buttons are distinguishable too.
Physical sliders are good for fine-grained control, but are also good at just smashing them all the way to min or max. When I try that on a touchscreen control, it might not make it all the way to the extreme, or my angle is wrong (no physical constraint to keep my hand/finger in place!) and it doesn't register at all because I veered off of the control.
Even when I'm looking at the screen already, using a directional pad means I'll always gradually get further and further off until it stops registering. Either because my attention is on a different part of the screen, or because my fingers are in the way of seeing the displayed pad. Not a problem with a physical stick or knob.