You know, I think touchscreens are not preferable unless you need/want to be able to have controls for many different systems in the same space (e.g. a smartphone with multiple apps). If you are needing a dedicated control for a high-stakes system, the fact that it's a more modern-looking interface should not matter. Touchscreens are inherently inferior to a mechanical interface, if it's a single-system (i.e. doesn't…
The UX terminology for what you're describing is a modal interface: https://en.wikipedia.org/wiki/Mode_(user_interface)
... which is to say, an interface that works differently depending on what "mode" the interface is in.
A classic example of a modal interface is vi/vim, where you have to explicitly switch into "editing" mode in order to actually insert text into the document. And a classic demonstration of why modal interfaces are undesirable can be produced simply by taking someone who's never used vi/vim before, sitting them down in front of it, and telling them to enter a line of text. They will start typing, and immediately become confused when the words they typed don't actually show up anywhere. (Or worse, when they happen to have typed a keystroke that corresponds to a vi command and weird stuff they didn't expect starts happening.)
As you note, modal interfaces are particularly bad in situations where the user needs to operate the system under pressure -- such as (say) on a warship, where the life of the operator may literally depend on them being able to accomplish tasks quickly and accurately. Modal interfaces force the operator to first orient themselves as to what mode the system is currently in before they can do anything, which slows down even experienced operators, and pull away attention that could otherwise be applied elsewhere.
What does all that have to do with touchscreens? Because how a touchscreen operates can be modified with only some programming, they tend to lure developers into building modal interfaces in an effort to cram as many features into them as possible. From a feature-checklist perspective that's great, but from a usability perspective it's a disaster. Anyone who's experienced a modern car infotainment system will understand why -- paging through menu screens to find the one mode with the feature you want while piloting a two-ton hunk of metal at 75mph is a bad combination.