I think I prefer the current USCF way. It can be disadvantageous to claim touch-move. Let’s say your opponent touches a piece that could potentially make a good move, but instead moves something else that hangs his queen. Would you really want to call touch move?
Similarly the move shouldn’t be determined simply by touching a piece, even if there is only one legal move to make. The clock should keep running, etc. If the game doesn’t end with that move, eventually that extra used clock time may become a factor later on. The opponent shouldn’t be penalized for this indecision.
Thanks, this is very useful advice. This has actually come up a couple of times in our unrated club blitz tournaments, and I didn’t know the answer, and our more seasoned blitz players didn’t know the answer, and heck, Bill Smythe wasn’t there – all of which led me to search the forums and find this post. And I agree with Tim Just that the rules committee should address this in the blitz rules.