It's worse than that, Joe. Touch reponse is still there because it applies to the actual keyboard. The problem is that the velocity of the panel organs is fixed in the synth so that not only does touch response not work, you can't alter the velocity through midi either. Makes my blood boil. I've complained bitterly to Yamaha about this but they come up with lame excuses about wanting the organs to be like "real" organs. The XG organs have touch response however, so they're the ones I always use, suitably layered.
Bryan