Like others above, I believe it depends on the dog. My boys love hugging and come to us often for it. Same with our previous dog who was much larger. She was 85 pounds and would put her "arms" around our necks.
There are a lot of things that I do with my dogs that are considered wrong or aggressive, like sustained direct eye contact and being nose to nose. It's a matter of trust and allowing the dog to be free to walk away when he or she chooses.
I also would not do never do these things when the dog is in the wrong mood, like a heightened state of alert.