You press the same buttons on the keyboard as you do on the stick. Practically all the commands you need when you're flying in Frespace are one-touch keyboard controls. It doesn't take away from flying to press a button. Even pilots of modern-day fighter craft have to press buttons whilst they're flying, you can't get away from it.
You are correct - modern day jets, such as the F16 - still require occasional switches to be flipped when entering an engagement - like - Master Arm On - but this is simply one flip. Other than that - there are rarely any other buttons to ever press - except for those on the HOTAS - the throttle and stick.
You can control ALL neccessary combat functions from the F16's throttle and stick - without ever having to touch a switch in the 'pit' - aside from Master Arm On and Eject.
All your Comms you set up while on the tarmac before takeoff - such as radio channel, Dlink for your wingmen, data cartridge with mission information - waypoint variants, CBU burst altitude, bingo fuel, ripple quantity etc.
Perhaps when you are striking a ground target - you might also have to press an mfd page or two to turn on FLIR - but uncaging mavericks to cycling between radar slave to camera mode etc - are ALL on the HOTAS - except switching the laser to ON - but even then - that readies it to lase when appropriate

Even after all that above - I haven't listed a single dogfight function that requires a switch press other than Master Arm On - which is a solid state switch which basically tells the jet - if you press fire - really fire vs. simulate firing.
The HOTAS is the quintessential invention of the 20th century for the Fighter aircraft - in addition to the HUD - they work together. I've played through FS 2 years ago without one - and now with one - and I'll tell you - the HOTAS adds a ton to this game. Don't knock it till ya try it
