(v) the act of constant and unneeded touching in awkward and inappropriate situations...
That little touchy feely is pretty damn hot!!
Other ways of saying it are touchy felt, touchy feeling.
2) to feel around with someones privates while attempting to not let them know its you
"Ah sick! that guy's playing touchy-feely with that unconscious girl"
In other words when you touch something that feels orgasmic it feels nice, so you say it's touchy feely so everyone knows it's orgasmic to touch (not neccesarily dirty)!
"Ooooh! It's touchy feely!"