In my opinion, and I have four children, I don't think I've ever even considered doing that in favour of having a cuddle.
I do understand however that babies especially can push you right up to the edge of madness. I've actually read that this is when they first learn to smile as a reaction to the parents frustration and stress - believe me when you see that first smile all the stress just flows right out of your whole being.
I don't know what the long-term effects are but I have had friends who have come from families who don't show physical affection such as hugs and kisses at all - and they've always seemed much colder and withdrawn.
Whereas I came from a family (mother, father, aunts, uncles, cousins included) that is very affectionate and this too has always seemed strange and overwhelming to friends of mine. The majority of my family in comparison are warm and extrovert individuals.
But having said that I wouldn't want to enforce my ways on anybody else and I'm not in the game of judging anyone else's outlook or upbringing.
I know which way I prefer though and I cuddle my children at every opportunity
Take care