It’s happening. The mg3 is very common in the third world and has touch screens now in the latest model. They have a few buttons on the wheel but the majority of features are on the tiny touchscreen in the center. If you see cars in the 3rd world without touchscreens they are older models is all. Sometimes it just takes a while for the new cheaper way to do things to become widespread.
Firstly, they're often older cars shipped from richer countries if it's a better deal than scrapping.
And for new build cars, they often lack a lot of the entertainment and safety systems required in western countries, so they also don't have the onboard computers that would run the touch screen.
When your car already has a backup camera required, so it _has_ to have a screen, and add at least handsfree bluetooth phone connectivity, bluetooth audio and digital radio since I haven't seen a new car without them for years, you have an onboard general purpose computer already. Switching to a touch screen is a small marginal cost over that, and you can lower costs by removing physical controls which not only removes the part cost, but also labour cost of installing, wiring, and quality control.
Also all the features not found in cars for low-cost markets don't need controls, so even if physical controls cost more per-item than touchscreens the total number of controls is much lower.
Where do you live? Everything you said could be a mental exercise in this third world country: It makes sense, but it is not reality.
New cars in here (at least chevrolet, isuzu and toyotas) are being shipped with a touchscreen. As you say, it covers the camera display, the infotaiment and map navigation. Everything else still has manual controls, THANK GOD. For instance AC, lights, wipers.
I currently have a 2017 Mazda Bt50
it didnt have the touchscreen. It does have a rearview camera, and the image is displayed in a little square screen in the central rearview mirror. It also has a frontal camera and both of them can record video continuosly. You can have Features without a "general purpose computer"
The most common transmission is manual, automatic costs around $1000 more. Why? Market preference. We do have some poorly maintained roads, and some dirt roads, mind you.
The only reason to ship all controls in a touchscreen is because it is fancy, and since it is already there, they want to save some money by not including physical buttons.
Well I _live_ in New Zealand, but the area I'm most familiar with is the pacific islands. The cars there are mostly used exports from Australia, New Zealand and Japan.
That's also true in New Zealand, half of the vehicles registered here every year are used imports from Japan, normally 5-10 years old. We don't get the low-cost models though as our safety standards are higher, though you do see Kei cars and trucks. When they can't be sold here anymore they get re-exported to the islands, and generally they make it back here as scrap.
There _are_ brand new cars of course, with the full suite of touch screens, but they're out of reach for most people. Even here in NZ we get feature-cut models to keep the price down.
As for 2017, the cost of large touchscreens was much higher then, and the general purpose computer that was definitely running it behind the scenes was much slower.
And as I said in my post, it's certainly for cost saving. Manufacturers realised they could save a few cents on controls and dollars in labour per car by using the touchscreen they were going to add anyway and there was enough compute power to make it responsive enough to sell. Plus a touchscreen look shiny and most people won't realise the problems until it's sold...
Touchscreens are more expensive than buttons and knobs. But screens are required by law in the USA and EU as they require backup cameras. And a digitizer is a lot cheaper than some buttons and knobs.
They aren’t more expensive to start with though. A small touchscreen is <$10 in large orders. This is why you can buy entire android phones for <usd$30 with no vendor lock-in.
Wiring in a set of buttons and knobs costs more than a small screen. The buttons and knobs are more ergonomic. The real answer to the above question is that it’s happening already. All new cheap Chinese (or anywhere else that caters to the developing world) made cars have a touch screen and fewer hardwired controls.