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It's a common misconception, and completely inaccurate.
There aren't that many devices which have physical buttons, so if they are important for you you're basically limited to the top-end devices from Amazon or Kobo (Kindle Oasis, Kobo Forma) or devices from less well-known manufacturers like Pocketbook which you'll have to buy online.
Going with a touchscreen gives you a hugely wider range of choices.
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