I have all the right equipment, I was (probably still) a bit of a amateur detail guy. I have 3 buckets (shampoo, rinse, wheels), power washer with 90 degree connector, Rupees polisher, grit guards, etc. I do know how to wash a car properly and have been doing it for many years.
The car wash is not touchless, it uses rotating brushes. I didn't say it didn't damage the paint, anything you touch with the paint damages it, of course it is going to cause more hairline scratches on the clear coat than a wash mitt.
For me, it's pretty negligible the clear coat scratches its putting on. If it does get bad enough for me to notice, I will simply get it paint corrected, something I do usually every 4-5 years anyways.
But we got vehicles that have gone through this car wash many many times, and I honestly can't see an issue with the paint. My point is, yes you won't get professional looking paint with an auto wash, but it's not crap either, if I told you my Toyota was only hand wash since new (instead of over 20 auto washes), you would believe it.