Infants getting sexuallly stimulated and becoming unable to distinguish between who's related and who's not... sounds like a real twisted type of "logic" to me.
My daughter was a chubby ticklish baby, so kissing her neck was great fun for our family because she'd giggle like a lunatic.
Uhm, she's 10 now and as far as I can tell, she was never sexually stimulated by any of our affections and she definitly has no incestous crushes on her uncle, who mind you lives with us.