It really comes down to which do you want more, a therapist you know is effective or a therapist who is huggy and self-discloses? I would much rather the former myself.

I would also point out, not every therapy relationship that involves touch and outside contact is good for the client. Read some of the horror stories on here as well as the positive posts.

I have seen three therapists over the past year, and only one of them had really good boundaries (not quite as rigid as your therapist's, but close). And she is by far not only my favorite of the three, but the most effective one - because I don't have to worry about her as a person, so to speak.