The Digital crown will provided haptic feedback, I don’t believe the actual power button is, but it is more recessed from it looks like in the pictures.
This is how Apple describes it:
“Haptic feedback now delivers a precise, click-like feel as you scroll. And a titanium electrode built into the top allows you to use the ECG app simply by touching it with your finger.”
As @Relentless Power suggests, the button will be further recessed but not haptic. It is still used to power on the device, so I have to imagine it is a physical button. iFixit will tell all come early Friday morning US time as Australia starts to get their devices.