Can ubuntu 16.04 work with touch screen computers?

Yes, it can! According to my experience, Ubuntu 16.04 works perfectly with touch screen and 2 in 1 devices. I have Lenovo X230 Tablet and all of its features, including the Wacom stylus (and 3G module), work better under Ubuntu than under Windows. That is strange because the device is 'designed' for Windows.

Something more, within Ubuntu I was able to solve some little issues that I couldn't solve within Windows, for example: How do I disable the touchpad when the lid is twisted or closed?

Here is a demo how my stylus works with Gimp: GIMP Pressure sensitivity. Note that, I have not installed any additional (software) drivers to got the touch features to work.

I installed Ubuntu 16.04 in a Lenovo yoga 13, this is a 2012 released touchscreen notebook. The touchscreen works well. However, it's not as sensitive as I could imagine. For example, it's not possible to draw. Not sure if this is because of Ubuntu or screen capabilities.