First of all let's establish that you are specifically talking about physical intimacy, yes?
As Fnord said, "For some it is" and that is because they are able to find enough fulfillment within the other forms of intimacy.
If you can have sex without love, you can have relationships/love without sex.
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My question to you is why do some couples not have sex? Is it out of fear or something?
I realize I'm not "you" but I'm a answer anyway. There are more than a few reasons a couple may abstain. Medical or health reasons, religious beliefs, fear of pregnancy, physically incapable, might be taking a break from it, no time or energy(temporary due to children), just aren't ready for it, it could be too painful, distance...to name some off the top of my head.
As for an a reason a couple might not have physical intimacy on the level of cuddling..My first guess would be is they have sensory issues that makes even that level uncomfortable. Or maybe someone is a germophob. Relationships are complicated with complicated imperfect people. Every couple gets to decide what is right for them.
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"Inside the heart of each and every one of us there is a longing to be understood by someone who really cares. When a person is understood, he or she can put up with almost anything in the world."