I totally agree with OP that the 'flat' visual style is appalling. (And gray-on-gray text is an obscenity.)
And what do you mean, disconnected from physical reality? I listed the examples where I pay with my wrist, squeeze my earbuds, draw with a pencil. I also snap photos and take videos, record with voice memos, send a pin with my location. I track AirTags, I identify plants by pointing at them, I learn constellations by aiming at them. Computing is more connected to physical reality than ever.
Another good experience was shaking my phone (an Android Motorola) to turn the flash light on and off. Another great natural movement is taking my iPhone and transfer the playing music to an Homepod by tapping on the two together.
For almost everything else I loathe touch devices. While older ones may be clunky visually, they are far more ergonomic. Yes, my phone can do a lot of stuff, but the whole process for a specific one is always clunky and companies go out of their ways to block you from altering the UX.