It's okay if she wants to observe you. Some parrots just like to watch without being touched, and that's fine. I would build up her confidence by letting her tell you how she wants to interact, and as long as it doesn't set up bad habits (such as regurgitating or being aggressive) I would support her in however she wants to be around you. The important thing is that she does want to be around you and is seeking out contact - she's curious about you, and that's something you want to encourage.
You may want to think about ways to interact that involve less contact. Offering her special foods is a good approach, as is having a collection of foot toys and offering her different ones.
She will hopefully be with you for years, so it's worth taking things slowly and building a really solid foundation of trust.
Something I thought of when watching your video is that she might not like being touched on her breast. Leia certainly doesn't, and will let me know that she doesn't like it by moving away from me. Perhaps try asking her if she'd like her head and neck scratched - this is how unmated parrots would preen each other, and would probably be interpreted as a friendly act. I ask Leia if she wants a headscratch by making a scratching motion with my fingers near her head, and if she wants a headscratch she bows her head and fluffs up her head and neck feathers. If she doesn't want a scratch, she'll move away a step or two.