Wheels and buttons respond faster, it forces vendors to be concise, and it doesn’t gunk up my screen.
Muscle memory forms quickly for anything that’s a “one and done” setting.
A non-modal interface for controlling audio settings (volume, bass, treble, etc.) would be one knob for each function—not one knob which changes function when you click it, or having to dig seven layers deep through in a touch screen menu. I change audio settings all the time on my car depending on what I'm listening to, because there are 6 knobs for this (big volume knob, small knobs for bass/mid/treble/balance/fader.[1]
Modal interfaces in cars are bad because their results are unpredictable. Touch screens are bad because they allow for non-modal interfaces, and also because they're not tactile.
[1] https://d3inagkmqs1m6q.cloudfront.net/1517/media-photos/cp04...
Yes, anything that could ever conceivably be needed to be used by the driver while driving must have a physical, mechanical control.
Things that can be configured while the car is parked and never need to be changed while driving, can be ok on a touch screen.
Touch screen is fine for setup screens, extra info, fine tuning stuff etc.
Point is when I'm driving down the road I should be able to muscle memory/tactily skip song, change volume, change air-conditioning settings etc...
But Bluetooth settings... changing colour of display, changing voice assistant tone... leave that on the touch screen. Don't need it.