I don't think kisses are essential, but wouldn't be bothered either. I would be worried about any setting that discouraged cuddles and sitting on laps, especially for younger children.
I saw my osteo through my pregnancy and now my DD is 18mo I take her sometimes. She treats her whilst she toddles about and once kissed the top of her head. I jumped a bit in suprise but wasn't a bit bothered, and this is someone who was only with her for half an hour. I think toddlers just bring out that kind of affection in most people.
Just wondered what everyone else thinks? I feel quite sad that some nurseries don't even encourage children to sit on staff members' laps for very long. My son goes to a nursery and a childminder and I think it is so important for him to get cuddles and kisses!