Just and FYI to all, the dev has enabled this feature now, tested it last night and it works flawlessly, so no more false mouse clicks when playing FPS games!
The setting can be found by triple clicking the quick access menu button, or double click and then press “Y” select the controller tab and scroll all the way to the bottom.
The setting is designed to re-enable the touch screen automatically when you reboot, as the dev feared that someone might enable this by accident and thinks their touch screen is broken 
Here is a link to HHD, its not mentioned in the release notes, but it has been included from v3.3.0 onwards Release v3.3.0: Gestures, Shortcuts, and External Controllers · hhd-dev/hhd · GitHub