Hahaha... I loved your little dialogue there - not a bad way to go about it IMO
Ok the way I see it - the key is INTENTION. It doesn't matter WHAT she does, it's WHY. But the more intimate the behaviour, the harder it is to find a WHY, but it still could be there. Anyway;
No I know heaps of girls who hug and kiss their male friends, on the lips. I'm one of their male friends. And they have boyfriends. It's rarer for someone to be that affectionate to kiss on the lips, but if you know her intention - that's just her way - then you don't have a problem with it.
Here's one example - I was dating a girl who was a smoker. I HATE smoking. I hate what it does to people and I hate what the passive smoke does to me. But I never brought it up directly. However, I didn't put up with smoke in my face either, I tried to sit the side of her that the smoke wasn't going, and we actually made a joke about how it kept following me. But through this she could see that I didn't like the smoke. This is not unreasonable. I think the line would be crossed if she said something that suggested she loved it, and to hell with anyone who had a problem with it - then I would start indirectly directing conversation to give my opinion on the issue without being confrontational. But what actually happened is one day she said she just has to quit smoking, and she's going to do it - at that moment I re-enforced it by saying Good! I'm so glad to hear that. You'll feel better, etc.
Her intentions were to quit smoking, and that made me willing to put up with it for a bit longer. If she had no intention of quitting, then we have a problem - but there is a very gradual sliding scale of approaching the issue without being confrontational and agressive. At the worst you should be blatant, and willing to put the relationship on the line - "it just won't work between us if..." and not "You better change yourself"