I think this picture is just adorable - Michelle is so lovely, and Her Majesty reminds me of my grandmother, particularly since her favorite color was pink. All this folderol about them embracing for a moment is silly - Elizabeth is a charming woman who probably got a warm feeling from Michelle and so decided to give her a little squeeze, and Michelle reciprocated. I think it's delightful.
One question, though - why does Her Majesty always carry a purse? Seems like someone else would carry it for her (Philip, perhaps?). For all her royalty, she's still a kindly old lady who you just want to help across the street. :)