The screen on the 320 is ok. It's not like the iPhone by any means, but it works. The picture review is pretty cool with the touch screen as you can either swipe or tap the side of the camera to go next one. I would rather have the buttons for precision, but I like some of the things the touch screen allows you to do. It also has wifi connectivity to the Internet and computer.
I've tried many camera touch screens within the past year and none are not like a cell phone. With that out of the way i'm perfectly happy with the screen of the 320. My wife and I are basic users who don't want to mess around with settings before taking a picture. We either turn the flash on or off or view the pic taken. Its a point and shoot so when one of our boys gets up to bat, or opens a birthday present that's all we want to do. And the 320 does it as well as any of my prior 3 Sony's point and shoot did.
The touch screen does not work well. I was very disappointed with how hard it was to make any selections. If you are expecting a similar touch experience like that of a cellphone today, then you'll be disappointed.