This was exactly like my son. I was like you, not wanting to squash his spirit. What I didn't know, until he was 4, is that he had sensory issues. Children like that feel everything on a heightened level. A light touch is ticklish, but a harder touch is harsh. They have a REALLY hard time knowing how to touch things lightly. Their hugs have to be bear hugs, or they don't want any at all. You do have to give him boundaries, gently, but seriously. You can do it with a smile. It really made playing with our little guy hard, and it made playdates miserable. Do mention this to your pediatrician and see what they have to say. Don't let him pooh-pooh you, though, if this keeps causing concern. A developmental pediatrician can do the real diagnosing, if there is an issue. Our ped. kept telling me our son was fine, just smart and high energy. Yet, he was such a high maintenance kid; crying at anything (still does, and he's 8 now), bright lights bother him, he gets really revved up if he's in a noisy atmosphere, etc. Of course, there's not a pill that "fixes" it, if there is indeed a sensory issue, but there are books to read to understand it, therapies that you can do to help him cope in our world, and suggestions to help you cope, too. My son always felt things more intensely, which made his personality very intense. There's no harm in boundaries, as long as you're gentle and loving.