Touchscreens are modal. If I want to control the climate, I first have to press the Climate capacitive button or scroll through the screen to find climate. That takes my hands off the wheel and my eyes off the road for longer than just tapping the fan-up button.
As for the cost, I will _happily_ pay the $100 more to have a more premium and tuned interior. Heck, I chose to step up an entire trim model to the top of the line trim just for the fancy LCD screen mirror. I'd happily pay extra for better buttons.
IMO touch screens are great for rarely used features, but anything that gets clicked on most drives should be a dedicated touch point (capacitive button, physical button, steering wheel control, whatever).
Give me multifunction displays from aviation. Touch screen in the middle, rows of modal buttons along the bottom and left side. You can use muscle memory to find the button.