It's a tricky one. The concerns, obviously about ending up imposing inappropriate physical intimacy on a child are totally right.
However, something we speak about less are the dangers of making a child feel rejected or growing up with a sense that their bodies are ugly/ untouchable/ dirty/ unloveable, and not feeling comfortable or confident giving and accepting physical intimacy.
Children learn all these wonderful things from their parents - from skin to skin touch, and physical expressions of love, shared innocently and without undue anxiety. Those who are ultra careful risk doing damage in that direction.
Strangely it's possible to suffer from both at once. My father didn't abuse me, but had a sexual energy and connection with me that looking back in retrospect, was unhealthy. Perhaps because of this, he also shut me off physically. (The first generally happened when he was drunk, the second when sober)...Both did me some damage. A strange mix of believing my sexuality was dangerous and too much and I had to suppress it, and believing I couldn't possibly be desireable to anybody and that my body was and should be invisible.
I think rather than any absolute marker of contact (like an age to stop having baths), what matters is the healthy, groundedness that the adult projects - the unsexualized, but not unphysical love they can share with their child. If that is there, the child absorbs the same. If that is not there, it can be scary for a child, regardless of what is actually done/ not done.