A lot of people pretend that feelings don't matter in life and then they spend much of their time trying to contain their emotions or redirect them in some way. When you don't deal with your feelings, you can't move past things that happened in the past and you'll be less happy. The same happens with being physically close to people because human beings feel more connected when they hug each other or touch in some positive way. You can't ignore the human need to feel wanted and bond meaningfully with others, it's part of living a genuine, fulfilled, happy life.
The benefits of being touchy-feely are that you are more aware of your emotions and can connect more meaningfully with others, and you're able to experience life on a deeper level. It's the people who can't understand their emotions or be kind or empathic who cause much of the unhappiness in the world. Thankfully, you can be a warm, kind, emotionally intelligent person no matter what's going on around you, and you'll be building a better, happier world while you do it.