And it's not just a New England thing. I have done contradancing and English Country Dancing in Michigan, Kentucky, California, North Carolina, and three different places in Germany. It's wonderful!
Outside of New England, people take hands on a lot of moves that are done without contact in New England. Contradance not only involves lots of touching, it involves lots of smiling, which is always a good thing.
I now play flute and pennywhistle for an English Country Dance Band, which unfortunately means I'm not on the floor touching and smiling, but it's still a lot of fun.