If I could just try to clear up this issue...
It seems to most that the protective behavior of The Illusionist seemed seedy or questionable. I'd just like to express my opinion; as I think this will clear up a lot for most viewers. This is a French movie. Meaning it's a european movie, thus meaning this movie had many european customs embedded into their characters. I have a family from Italy and Turkey, and I have to say this film had a very European feeling with European acting characters. The things that The Illusionist and Alice did were not romantic in the slightest. For a young lady and an older man with a father/daughter relationship it is very common to kiss each others cheeks, walk down the street holding each others arms, etc. It has nothing to do with romance or a sexual relationship.
I hope that helped a bit..