There is no discernible difference to me between using a builtin touchscreen and a phone. If one is distracted driving, then so should the other. You have to take your eyes off the road to use both, and with physical controls, I might glance it it but most of the operation of them is done by braille. If I pressed a button, I know I pressed a button and I pressed the right one, I don’t have to look back at it to know that. And if I have to follow it up with another action, my hand already knows where that control is relative to the one I just pressed.
The only thing I could live with on touchscreen is music or diagnostics since neither are particularly necessary when you’re in the act of driving.
The difference for me is that my phone is sitting in a holder stuck to the windscreen and looking at it means I’m only slightly looking away from the road, so I will still see movement in my peripheral vision.
By contrast, a large touchscreen in the middle of the dash necessarily means taking my eyes entirely off the road and probably also adjusting to the brightness of the display.
Neither are great, but one is worse than the other