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Sqad - the term is quite common, and in common useage.
Broadly speaking, it means how physically close someone can be before you feel uncomrotable. This varies obviously - anyone will be more comfortable with their loved ones neing near to them, touching them etc., than complete strangers.
There are cultural variations as well - Greek men for instance will talk to each other almost nose to nose, wheras English men keep a distance between even close friends.
Woem tend to be more tactile and comfortable with contact with each other than do men, but again this varies.
So no, it's not baloney, it's a recognised expression of how someone behaves in terms of respect for others. The point being raised here, is that even for a married couple, Saatchi's behaviour represents an uncomfortable invasion of his wife's personal space.