The thing that everyone always misses in these conversations is that screens over buttons is a cost cutting measure, not a first-principles design decision.
It means the UI can be designed and developed mostly independently of the physical controls, which helps reduce rework. I also expect it reduces costs for manufacture and assembly.
I’m in favour of more physical controls, but it surprises me that this rarely comes up. I suppose “people are idiots” is a more appealing explanation.