I think the more generous, less arguable, and less conspiratorial reason would be that climate control and other car-related features have been integrated into one UI resulting in a net-better experience and quality finish.
You could make the argument that "physical buttons are safer," but that doesn't mean the UI that accompanied these buttons was that great.
Most vehicles pre-touchscreen had vehicle control functions on shitty jog wheels or arrow buttons on the steering wheel (maybe with a 7 segment display, maybe an LCD.)