I would end it. Tbh I usually kiss guys before they are my boyfriend to see if the chemistry is there at all. So if we still hadn't kissed at that point I would feel that our relationship wasn't developing and my affections would probably fade. Plus I would get bored...not to be blunt but physicality is a big part of a relationship.
I don't think I'd be in love with them if I couldn't hug or kiss them. I'd dump them after the second date.
I would think he is..well..lacking courage. It's not sex, it's a kiss, if he knows I like him, dates me, and won't even kiss me I would be very discouraged and fed up. I don't need to have sex too fast but I would feel like he's not physically into me.