Total agreement
The touchscreen console for heating/air-conditioning, radio/CD, and information in my second-generation Prius (2004-2009, mine's a 2007) is awful. Thankfully many of the options you want are on the steering wheel controls and the radio has a few knobs on it for tuning as well. It's annoying not to have proper control of A/C inhibit, fan speed or vent output, though.
Toyota deleted it from the 3rd generation Prius, though this may have been more to do with cost - the 2G display unit has an MSRP of $7,000, while the monochrome dot-matrix vacuum-fluorescent display in the 3G is $4,446. The new Aqua/Prius c has a colour TFT LCD information display but it's just a display, not a touchscreen. Toyota GB do have a new touchscreen interface, but only for interacting with a Bluetooth or USB-connected phone or MP3 player, and built-in sat nav if it's fitted. I'd still stay away from integrated sat nav, it's far more expensive than a standalone unit and usually isn't easily updateable to the latest maps.