I have a warm feeling when I see two male friends being physically affectionate with each other, without worrying with stupid social expectations. ^^ It's so cute. I say it about males in special, because between females it's seen as acceptable.
As for me, I like physical affection with people I'm close with. I'm not usually an initiator, but I'll gladly return friend cuddles. Hugs, holding hands, tender kisses on the cheek, resting your head on their shoulders.. I like it all.

It's only too far for me if it gets excessive... or too intimate. Like, I've known people who like to greet each other with lip pecks. Now, that's too much.
It depends also on how my friends are comfortable with that. I have a couple of very phisically affectionate friends, but most are not so much, so I respect their space. ^^
And I can handle well hugs from people that aren't so close to me, but that's all. I regard them as warm people, but anything more than a hug starts creeping me out.