I think the crucial aspect here is physical touch.
In many animal societies touch is used as a mechanism to elaborate the bonds of a society. Both in the positive aspect of knitting together and supporting individuals into a society and in the destructive element of oppressing or excising individuals within/from a society.
Given that touch has an elevated nature in this society its effects will be greater. It might even be considered a requirement in certain social conventions, such as a handshake to seal a deal. Perhaps there would be a handshake to open negotiations? ie. Prove to me that you are here honestly, and desire to reach a resolution that isn't too terrible for me.
Conversely I can see this being used in an exploitative fashion. Torturers would be able to use it to glean more optimal ways of inflicting pain and misery. They need only a more accurate read of the individuals emotional and motivational state. The person wishes to escape? Plan a room/situation that allows them to feel like they are escaping, only to have them literally through themselves into a worse situation. Nothing like being in pain, and knowing that it was your own fault.
I see this as a more extreme society. It is probably going to tend toward tyranny more often than not.
- Perhaps its the tyranny of repression, where by individuals are strictly forbade from physical contact so as to prevent the negative consequences, but at the cost of the good. In such a society individuals will be deeply afraid of contact, even so much that individuals initially experience the worst when they do marry, perhaps they never experience the good.
- Or it will tend toward a tyranny of love where you cannot have a bad day, were to even eat means that you must disclose your emotions and motivations to the other individual. In such a society if you have depression, it will be judged as a personal defect, perhaps to the point were society judges that it is better for the depressed individual to not exist than to be interacted with.
It is possible for such a society to keep the middle road, but this would take a lot of societal organisation. Much more than our human societies at least, simply because touch is so much more compelling and powerful than it is in our own societies.
Otherwise I see no particular reason for why such a society could not manifest in any of the societal models humans have already discovered: Anarchy, Monarchy, Communism, Republic, Democracy, etc... There just needs to be a little thought about how the power of touch transforms the small interactions between individuals, like how they greet, trade, court, learn, etc...
One interesting consequence might be that these individuals lack the skill to visually infer emotional and motivational state like humans can. We do it by monitoring body posture, facial ques, eye direction, etc... perhaps because they can infer this from touch, these skills are not manifested fully. Perhaps there is an individual without the touch ability who is remarked as having godly powers because they can tell the emotions/motivations of another from a distance without touch.