They can be used, they just need more complexity than a simple switch that completes a circuit, they now have tiny cpus so they can signal the bus correctly. The switch must broadcast turn thing on when the switch is set to on, and then turn thing off when the switch is set to off, all with whatever serial protocol being used (including back off and retry, etc. ..). So your input devices need to be little computers so that you can use one bus for everything, now you can see where one touch screen begins to save money.
Ah, the classic "a keyboard has a CPU for each key" argument
You can have hundreds of switches closing circuits all connected to a device that is connected to the can bus.
I don't believe what you are describing is necessary. I am pretty sure you could have a module where the switches are wired normally into something and that communicates with the main bus. I am pretty sure this is how a lot of cars already work from watching people work on more modern vehicles.
In any event. I've never heard a good explanation of why I need all of this to turn the lights on or off in a car, when much simpler systems worked perfectly fine.