Buttons. Until they absolutely nail touch screens I will pick buttons as a primary mechanic but I think touch screens are good when used in conjunction with buttons.
I had a phone with touchscreen and when texting my thumb would always brush the cancel button and delete my text. I hated it and swapped it for the older model with buttons. Touchscreen needs to be thought through properley if its to work.
Buttons. (95% of the time) If a game is designed such that touchscreen control is natural and fluid (elite beat agents) then touch. adding touch screen controls to games that don't need them ( pokemon for example ) is just annoying, especially when normal button controls are removed in the process. the most intelligent thing to do is implement both, and let the gamer choose their style.
I use a fair amount of both. 60% Buttons and 40% Touchscreen for DS and 20% buttons for phone, 80% Touchscreen. 100% buttons for computer.