I only had my youngest daughter from birth, having inherited the older two - but my rule for them all was exactly the same - I will pick them up and cuddle them until they tell me they are too old.
My F-I-L once told me my youngest was 'too old' to be picked up at five. I told him that the day would come when she would be too big to physicaly pick up, and when thay day came, i would never be able to do it ever again. Therefore, I would make the most of every opportunity, and I never refused any of my girls a pick-up if they wanted one.
Now they are all mums themselves, but, to varying degrees, they still love a cuddle, and their children all love to picked up and kissed and cuddledapart from the oldest, which is faie enough, she is nearly eighteen, but still loves a cuddle when we meet and part.
i think this woman was rude and intrusive, and in common with everyone else, i would ignore her.
Remember, our children don't 'belong' to us - they are loaned to us for a short time, so make the most of each and every day of childhood, and you can, as I do, look back and know you never missed a pick-up, ever.