You know that part when she hugs the Emperor and Yao asks "is she allowed to do that?" Would she actually be allowed to do that? Even as a kid I figured that even if she managed to get away with disguising herself as a man to join the military that would have been the last straw
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The only reason that scene was in there was to appeal to kids, because if that story had happened for real, she would have respectfully kept her distance from the Emperor.
The only people allowed to touch him (and it only would have been in private) would have been family members and body servants, not a stranger and a commoner out in public in front of everyone. There were rules like that for a reason, particularly in a culture where they believed the Emperor ruled because of the divine will of heaven, and his body was sacred. An exception to this rule would have been situations like when Chan Po picked him up to carry him to safety.
We had similar rules in the West, but that's changed a little bit, since now it's customary for kings and queens over there to shake hands with other royals and dignitaries in public.