Soft robots and manipulators with inflatable links possess inherent safety characteristics that make them a very interesting choice for tasks requiring human-robot interaction. However, they may face important challenges in their performance due to low structural stiffness. Accurate positioning of the end effector may prove a difficult task due to limitations in gravity compensation, or due to the occurrence of oscillations during motion, especially in the absence of precise information about the payload that is being manipulated. In this paper a novel approach to the design and control of a robot with an inflatable link is proposed, where the link assumes the triple role of compliant structural element, touch sensor, and active mechanism to adjust the performance of vibration control algorithms. For this, a vision sensor is placed inside the link to provide information about the structural deformation. The sensor is used to measure the tip displacement, and also to detect contact of the link surface with the surrounding environment. The concept was implemented on a two-joint rigid manipulator with a single inflatable link. Experiments on vibration control and contact detection of the inflatable link are reported where the control system was able to significantly reduce tip oscillations, including when a payload was added to the tip. The robot was also able to make binary detection of contact between the inflatable link and the user, and change its operation mode accordingly.