To answer your question about the touch screen: no, you don't need it.
Don't worry about the software, except for the basics you'll be using all the time. I'm assuming that you'll be using Microsoft Office, which you are getting; Photo editing software (not sure if what you are getting is enough, might be); do you plan to do any type of video editing?
Most game software you can get on the cheap, so I wouldn't worry about that. You do want to make sure you get really solid protection against malware (viruses, worms, and spyware).
I've had problems with McAfee conflicting with other software on my notebook, but it is very popular. You can also download Windows Defender and Hijaack This.