Two separate points: 1. This story is certainly apocryphal. I'd like to see some names and dates for the obscenity in church by a nice old lady praying the rosary. It's clearly a manufactured story to support the author's point.
2. If you go to the New Mass, then you do have to show some charity to your neighbors. Rather than even a silent refusal, I always made some effort to appear friendly during the sign of peace so that others don't get the idea that I'm rejecting them personally. One will not win converts to the traditional Catholic faith through uncharitable acts. If you object to the sign of peace, go to the Latin Mass, don't take it out on your neighbors in the pew.
On the other hand, I don't hold hands at the Our Father. But the difference is that the handshake at the sign of peace is a legitimate part of the New Mass, whereas the hand-holding at the Our Father has always been contrary to the rubrics -- especially when everyone leaves their place in order to cross aisles.