Until I can touchtype on a touchscreen, I won't like them. Luckily, technology is in the works that will allow this shortly (thanks to Belial for pointing that out to me). I just like being able to, when calling a callcentre or some moron robot thing, to be able to 'Press 1' without having to stare at the device like a mug.
I have used a few iPhones/iTouchs and I have found that the smudging issue is still visible, but it's like a smudge on a TV, you only see iti n the dark scenes or at certain angles. It's bearable. My hands sweat quite a bit and I don't like having to lock the screen just to wipe it clear, and then immediately smudge it again when I unlock it (I password my shit).
"If it looks like a duck, and quacks like a duck, we have at least to consider the possibility that we have a small aquatic bird of the family anatidae on our hands." - Douglas Adams