Edit: I should preface this post by stating that I own & drive a Tesla Model 3 for almost two years now.
While I don't disagree that having most controls on the touchscreen can lead to distraction, the design gives nearly unlimited flexibility over the vehicle controls, far beyond what can be had with physical buttons/switches. New features can and have been implemented with a software update.
The physical buttons, switches & thumbwheels are located on the steering wheel. In a typical drive or commute to & from work, I find I rarely take my hands off the steering wheel at all.
Tesla encourages owners to learn and use voice commands instead of the touchscreen. That goes a long way to minimizing the hazard of distraction. Myself, I'll sometimes ask a passenger to figure it out while I'm driving. I have also used the 'Autopilot' on a clear stretch of road to keep in between the lines if I ever need to change something. But at this point I've become more familiar with where to find stuff and spend less time staring at the screen than I used to. It's a learning process, not unlike learning any other new car.
Touchscreen technology is a new innovation, and innovation is usually rewarded and celebrated. I'm curious to see if anyone complains about government over-reach...