For some reason (I blame sci-fi authors and their vision of future), consumer space is eroding rapidly with touch screens. Consumers will eat up marketing bullshit when it is wrapped in a scifi wrapper, with "Now a touchscreen interface!". This is sadly eroding into things like professional oscilloscopes, and even cockpits!
They're cheap, easily reconfigurable (this is a bug, not a feature) and it makes the bean counters happy - "Oh you mean the $48 BOM can be reduced to $7.50 with one touch screen and 1 UI software contractor for 4 months! And we can market it as a cool thing without users noticing? Holyshit, you're promoted."
That said, iPhone is nice. It is rare exception, I don't know how Steve Jobs saw this, but this is perhaps his genius. iPhone + touchscreen interface totally makes sense. Blackberry folks flaunted their physical keyboards and yet, iPhone won. This frankly surprises me. If it was year 2005, I would have bet on Blackberry over iPhone. Everybody did.