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.
I gotta mention that I have a circa 2000 Japanese luxury car and the dials that control the stereo and the air conditioning are actually remarkably unpredictable. Turning the knob at all quickly will disorient the system and you can have a large increase in value or no-increase-at all (it seems to be an artifact of the knob changing a digital value). If you look carefully and move slowly they work but they essentially have all the drawbacks you describe with a touch screen - except you can't do something else entirely, thankfully. Obviously, better design would fix this so one does have to say "properly designed knobs are better".