Touch typing will increase your productivity because you will get your HN comments done in 10% of the time, leaving time for thinking about code. :)
Development isn't just coding. It's writing documentation (requirements, high level design, detailed design, reference manuals, ...), commit comments, bug reports, e-mails, status reports, ...
Poor keyboarding skills will definitely hold you back.
In order to reason about code, one thing you can do is write. Not write code, but prose about the subject matter. Writing is a thinking tool, and if you have good typing skills, the words pour out a lot faster, at times almost as fast as you can think.