Seconded. Touchscreens are great in many contexts but I have never liked them on atms. The latency between tapping something and the result might be the bank checking my account balance, or might be something wrong with the UI. When I'm dealing with money stuff I don't want any distracting ambiguities.

Having said that I like machines enough that I assume I can figure anything out because it was intended to be used by someone, so I rarely struggle unless it's a truly awful design. Touchscreens are way more intuitive for most people, though in cases such as you describe I wonder what the helpless people think the buttons outside of the screen are there for and why they're reluctant to try pushing them.