The discussion explores the concept that true physical contact may not occur due to atomic structure, where electrons repel each other at a distance of about 10^-8 meters. This leads to the question of how we perceive touch if we never actually "touch" anything. Sensation arises from the deformation of skin and the subsequent electrical signals sent to the brain via nerve cells, primarily influenced by electromagnetic forces. The conversation also touches on the nature of matter, describing it as mostly empty space and discussing the role of friction in enabling physical interactions. Ultimately, the idea of "touch" is redefined as an interaction mediated by electromagnetic fields rather than direct contact between atoms.