It has to be more than that. A touch sensor might be cheaper than a button, but even Software UI distances itself from the button visual of the 90s and 00s, instead opting for icons with no discernible background or button association. Software UI design is very much imitating how a physical touch sensor interface looks. It seems to be the current trend, chasing a "clean" design above all else.
I miss switches. Big metal toggle switches with labeled positions. These tiny hall effect buttons that barely give any feedback are the worst of both worlds. They have no visible status. The tactile element isn't much better than a touchscreen, and they break. Toggles!