Touch interfaces are just fine for creating. They only become limited when you're trying to emulate a different interface, like a precision pointing device, or half assed emulation of an interface like a keyboard, which relies on precise finger placement and a variety of non-visual feedback mechanisms.

The iPad has no practical multitouch input limits (I think it's limited to what int can hold), so it can track all 10 of your fingers at once, just as fast as a keyboard. Given the right interface design it has more input bandwidth potential than a keyboard, just not the current familiarity.

Give it time, tablets and multitouch are still in their infancy.

No, touch interfaces definitely have less bandwidth than a keyboard, and you can't make it all up with clever tech. Fingers are huge, relatively speaking, and for touch interfaces to make up for that fact they must get fewer bits out of the resulting input. The mathematics of signal processing require this. A stroke is much less definitive than a keystroke, or a mouse motion with click, etc. Moreover, you have the problem of interfering with output bandwidth as well as if you want to touch anything other than the very bottom of the screen you must obscure the screen with your hand while doing it for seconds at a time. You get less bandwidth both out and in.

What obscures this fact from your immediate recognition is that, unsurprisingly, touch interfaces are optimized to work under those circumstances, so you don't really "feel" the limitations, but you would if you really tried to push them the way a really good content creation application would.

For low-bandwidth applications they're fine, but they will never ever take over everywhere because they have weaknesses that make them unsuitable for high-precision, high-IO tasks.

I don't remember asserting they would take over everywhere, just that they can function fine for content creation. By content, I did not mean "stuff created with a keyboard" and I think my second sentence makes that perfectly clear. Touchscreens are clearly not perfect multi-purpose interfaces.

But I think you're ignoring the true significance of multitouch and other sensors and the additional dimensions of input that provides. A keyboard is nearly linear input. There's a lot of 2 finger chords and a smaller set of 3 finger keyboard chords, but for typing there's nothing really separating a 3 fingered man from a 10 fingered man except for input speed. Compare that to the capabilities of a 3 fingered man and a 10 fingered man playing the piano and you get the idea.

iOS is actually limited to eleven simultaneous touch events. We have ten fingers, typically, and there has been fair speculation about what the eleventh input method might be.

A cat?