I'm not too keen on a name change but adding a touch layer in OS X is a great idea. It could be dashboard like, triggered with a hotkey. Not only would it allow lots of little apps like widgets are today but the best part would be the inclusion of a touch mode in normal apps, with an interface more tuned towards gestures and multitouch. Say you're doing some image editing and feel like doing some hand drawing; enter application touch mode could be very handy and elegant.
Ruined?
The recording artists would beg to differ on that...
The only one's who ruined it were the record companies who've screwed artists and underpaid them for decades for corporate profit.
Your last sentence doesn't make sense.
And Apple did ruin it. Remember all of those tapes and CD albums people used to buy? Not anymore. Now people just buy (or pirate) individual songs. And the iTunes Store brought many of the songs out in digital form on the internet in the first place. Then they got rid of DRM. While DRM could be removed before, it was annoying. People just authorized 5 computers. Now Apple doesn't care if you make copies all over an organization of the song.
The Beatles are right to refuse the iTunes Store. It's getting all of the artists stuck selling a song for 60 cents to $1.60. And few actually buy the entire album. And Apple collects transaction fees.