You would think Microchip would be only too pleased for you to promote their products. Perhaps they're doing their sums to work out how much they are going to pay you? :D
The principle of operation of the touchpad is that of a potentiometer, with your finger acting as the wiper to pick off a fraction of the voltage applied between corners of the resistive sheet defined by the graphite layer.
Problems include
1) non-uniformity of the layer,
2) wear and tear of...
What are the voltages between T1 base and ground, and between T1 collector and ground?
Changing the R1 value may be helpful in getting oscillations started. Experiment.
Do you have access to an oscilloscope?
What are the voltages at T1 base and collector?
Are you using the exact transformer shown?
Have you tried reversing the polarity of the winding that drives T1 base?
You can still measure the resistance. Measure from end to end of the track (or from end to end of each arcuate chunk, if it's broken; then add the resistances).
At the centre of that 'pot' there seems to be an operating tag for what could be a rotary switch. Can you post a pic of the other side of the 'pot' to verify ?
Welcome to EP.
The MCU is pulling the voltage down to 1V.
No. It would be 2.3V only if the diode were conducting (which it isn't, because the cathode voltage is higher than the anode voltage).
Lots of bells and whistles there. A simple analogue PWM generator, with frequency and duty cycle separately controllable with respective potentiometers, could be built cheaply using a TL494 ic.
The vice jaws acted as a magnetic shunt, so that less magnetic flux passed through the rotor. I don't think two separated steel additions would have the same effect.