This ignores the issue that physical keys have tacticle feedback that touch screens do not.

This is a big issue with modern cars (particularly Teslas). People generally hate touch screens because you have to look at them to use them. For driving in particular, that's a real problem. Compare this to a more normal car where you can feel the AC button or the volume or whatever.

Companies like touch screens because it lets them punt on UI/UX design and selecting controls, which means they basically never get done. It's purely a cost issue.

Now with Macbooks, I did like that I could slide my finger for the volume. That's it. And that wasn't worth losing the Escape key for. Or function keys for that matter.

But that's so specific that I'd rather just have a volume control. A slider would be ideal but that takes up a lot of space. The best compromise is a "roller" (like on the Corsair K70 keyboard) as you can get precision and speed. You absolutely don't want to repeatedly hit a volume up or down button.

I agree that the top row on a macbook keyboard shouldn't be replaced because some of the keys are essential there.

I'm imagining a touch screen right next to the trackpad that displays the short cuts to common functions of the current app that's open.

For example, I don't mind having common controls of, say Google sheets or Photoshop near the keyboard. Maybe the trackpad could be that touchscreen. idk but I feel there's something to explore in this space.

Or alternatively, individual keys on a keyboard can be LCD screens and show you app specific controls. this way you get the haptic feedback too.

So basically a stream deck. Those things are pretty tempting, I must admit. When similar functions are shrunk down and integrated into regular keyboards, my wallet will be in trouble.

Although this reminds me, my old Logitech G15 from 2008 already had an LCD screen and a bunch of app-customisable buttons.