Touch is just another way of getting input from the user. Whether you route this input to an XNA app or WPF app depends more on what you want to do in the app.
XNA is a lower level api for doing 2D/3D on Windows, Xbox and Zune. WPF has only a higher level support for doing 3D and targets (currently) only Windows. So going with XNA vs WPF is imo more a decision of graphics requirements and platform support.
Since your app is graphic intense it could be more efficient to work at a lower level (read XNA or even SlimDX/DirectX). Reimer's XNA tutorials have a lot of great articles for starting out with XNA.