Hugging is fine.
My cousin's have invented this manoveure where when they see an aunty who wants to give them pyar(on the head), they stand still, upright and don't bow down; so that their hair does not get messed up and their head is not massaged. The aunties end up patting them on the back.
Some people genuinely do not like hugging. One of my closest friends who I have know for years, hates being hugged and refuses to be hugged. Those that know her will not do it. It is all about what one is comfortable with and people should respect that.
Disrespectful/ too uptight cousins? :-) What's wrong with getting a sincere loving kiss from older person on forehead or massaged on head?
Off course if someone is not really comfortable, someone should not force it.
I say, those who do not like having a friendly hug must not wearing a deodorant...LOL