Not to mention the inherent problem of a capacitive button that lives on a bezel that people use to grasp the device. There'd be no grazing the home button while turning or moving your hand positions without possibly-activating that button. Absent some bullet-proof pressure-sensing technology, it would be incredibly frustrating.
So mark me down for hoping that the "touch" bit is either an allusion to some haptic feedback technology, or some pressure-sensing technology, or even just an ad-copy play off "see" that people are reading too much into.