you should have kissed her....
the reason why she said "too touchy" is because you kept just touching her and nothing else for too long that it probably became sort of creepy for her.
But these situations are weird, because she almost seems not into it, yet she isn't stopping you. Its hard to escalate because of self doubt... wondering if she is liking it or not. But I've learned not to take her lack of enthusiasm for disinterest.
It could be a number of things... She could simply just be really shy, she doesn't want to feel like a slvt so she is making YOU do all the work so its not like she did anything but you did it to her (thats fine, some girls need that).
So even though its difficult just do what you want, just force yourself to escalate even though she being a dead log.... Try and make the situation more playful though too, making it more fun will always relax the girl so she can get into it more... like for example if you guys started having a tickle fight or wrestling or something thats perfect!!! Then to really take the lead just pick her up and THROW her on your bed, some girls really really love that, cause they are into it, but like I said they have all these beliefs and fears of being slvtty. So if you took total control of the situation it takes away her responsibility of having to act proper and then she and you can have the fun you both want.