Honestly, every time I use a tablet the first thing on my mind is the firmware invading my privacy. The next thing though is input devices. (I'll probably end up flashing cyanogen mod.)
Input devices, for most users, and even most developers, are something assumed. For desktop it's keyboard and mouse, for laptop it's keyboard and some kind of mouse-like input device. For tablets it's touch or buttons. For phones it's touch or buttons. (I don't think most tablets that use buttons, like e-readers, are open for development. Correct me if I'm wrong though.)
I'm going to reiterate what I've already said before, touch sucks as a universal interface.  So my question ends up being "What peripherals make sense for a mobile device?". Recently I received a tiny bluetooth keyboard to type on my Nexus 7. That's a step in the right direction, as typing things out with the on-screen keyboard is painful and awkward. (And since a stylus is too slow, smudges up the display...)
For a pointer device I am using a capacitive stylus. My current hypothesis is that the dominant paradigm for tablets will be keyboard and pen. Though for delicate tasks such as drawing, a capacitive stylus leaves much to be desired. IMO touch should be, in the majority of cases, a fallback interface for people without peripherals. For most applications it doesn't beat traditional input devices such as pens keyboards and mice of one sort or another.
Your complaint about touch interfaces probably has more to do with buying a really shitty MP3 player than anything inherent about touch.
I just mentioned I have a Nexus 7. Same complaints mostly. Though the touch is more responsive in the 7, doesn't really alleviate my complaints. (I never complained about latency on the Sanza because it's a sub $100 device and can't be expected to have decent capacitive touch hardware. Which is part of the reason it should use buttons, there was no reason to make it a device driven by touch.)
That and I haven't seen very many "gestures" in the android apps I use. Though I've heard a lot of hype about them.
>Touch beats pens, keyboards, and mice in the respect that you don't have to carry around a bunch of peripherals. Nearly everybody has fingers and spent the first couple years of their lives learning to use them.
Yes, yes it does. Which is why it was probably a smart idea to force developers to assume only a touch screen for most applications, it stops them from requiring a stylus for stuff that doesn't need it. At the same time, using a tablet with just your fingers is really painful, and theres no way I'm the only person who holds this opinion.
And theres a reason tablet keyboards are so small, and usually clamp onto the device they're built for, it's because nobody is going to lug around a full sized 104 key desktop keyboard. And pens are small, they fit in your pocket easily. Together they probably fix enough of the weaknesses touch has as an interface to make a tablet usable as more than a toy.
when I say touch should be a "fallback" interface, that might imply it shouldn't receive regular use. I really mean something closer to "default". A good example might be GIMP. (Or any other image editor, like photoshop.) People who are serious about drawing digitally usually buy a drawing tablet, or in decades past some sort of light pen. But because drawing tablets work like any other pointing device from the operating systems perspective, users who prefer a drawing tablet can use one without locking out users who only have an optical mouse, and vice versa.
A capacitive touch stylus is compatible with touch screens, meaning that for applications that don't require extreme delicacy, pens and touch can co-exist without carrying around any large peripherals. Users who don't want to buy any fancy add-ons are happy, users who can't stand smudging their screen and cleaning it with a glasses cloth are happy too.
That's the only way in which it beats those things, in particular keyboards. In most other aspects (e.g., usability) it falls far, far short.