I'd say your wife is likely in wounded-child mode, acting on "if touching hurt me, then not allowing touching will keep me safe." Of course, that doesn't really work, because it doesn't allow the grown woman to take control of her own body.
I'm curious: how does your wife handle physical touch with your children? Is she able to hug/cuddle/kiss them? Can they come to her if they need physical comfort? Can she snuggle up with them on the sofa? Was she able to breast feed, and did she enjoy it?
Also, are you physically affectionate with your children?
