Everyone Dies
I assume the planets are on a "gentle" (shallow) approach to one another, which seems to match your description of "eventually takes it so close [that] they end up touching". There will be panic as the planets draw nearer.
Everyone will die; it's just a question of when and how.
Tidal forces
As the planets approach, their mutual gravitational acceleration (doubled!) will pull them together and accelerate them to even higher relative speeds. The first problem is, the gravitational acceleration will not be uniform: the "near" pieces of the planets will feel a stronger pull than the "far" pieces, and this effect will be very pronounced.
It will cause great earthquakes and incredible ocean tides (and tsunamis), which will obliterate anything within a few hundred kilometers of a coastline. It will also destroy key infrastructure.
The atmospheres of both planets will be easily affected, causing weather patterns of a far greater magnitude than anything we know as both atmospheres will be pulled toward the center of mass of the two planets.
Roche Limit
If anyone is still alive after all of the above, this last bit should do them in.
Edit: Fixed math (and included steps!) Thanks to MadBender for the catch!
The Roche limit is the distance (radius) within which a celestial body (like a planet) can no longer hold itself together via its own gravity, and is then pulled apart by the gravitational tidal forces I introduced, above. The Roche limit (d) for rigid bodies1 $\, m$ and $M$ (your twin Earths), looks like this:
$$d = R_m \left( 2 \cdot \frac{\rho_M}{\rho_m} \right)^{1/3}$$
$\rho_M / \rho_m$ is the ratio of densities of both planets. Since they are identical, their density ratio will be 1/1, thus:
$$d = R_m \left( 2 \cdot \frac{1}{1} \right)^{1/3} \approx 1.26 R_m$$
$$d \approx 1.26 \times 6\,371\text{ km} \approx 8\,027\text{ km}$$
As the two planets come within the Roche limit, the effects from the previous section will have already had catastrophic results, and started to elongate the planets. The difference is, that near the Roche boundary, gravity won't be enough to hold the planets together.
The overall mass stays the same, but the planets are literally torn to pieces. The atmospheres and oceans more or less go without a fight (see previous section), but the solid pieces will come bit by bit, and the (now very chaotic) motions will result in more impacts, which will continually pulverize the pieces until there isn't much left but a ring of debris around the star, almost certainly with no survivors.
What actually kills the remaining inhabitants is somewhat a matter of chance, but could be:
- Direct impact or secondary impact forces
- Suffocation/decompression as the atmosphere is pulled towards the center of mass but your tiny planetoid carries on a different trajectory. Or, the atmosphere simply gets thinner as the mass of your planetoid is too weak to retain it at sufficient density to support human life.
Other effects
- The magnetic fields of both planets will combine, quite likely in a way that would reduce the effectiveness of the magnetosphere, allowing cosmic rays to bombard the inhabitants, causing an increase in radiation sickness and cancers, however I don't think anyone will live long enough for that.
Notes
- Of course the Earth isn't completely rigid. However, all of the liquid and gases would already have been pulled and squeezed into the gnarliest surf anyone has ever seen.