I own a pair of Monster iSport Freedom 2's which have a touch control for volume and skipping, and oh boy is touch control a bad idea on headphones. For example when wearing the headphones under a hood, while outside in the rain, it sometimes registers rain as a touch action, so your volume or song changes suddenly. Also the touch control accurancy isn't very stellar indoor either.
So based on my experience, I gladly take physical buttons over touch controls, since for me touch controls are more like a gimmick than good usability.