Yes, I found that my hands absorbed the string vibration and dulled the sound. Couldn't find steel thimbles, though, had to use my grandma's old brass ones, and had to do a lot of sorting to find ones without indentations.
An alternative is to put a piece of ebony of the right thickness between the neck and the strings, so that you have about the same gap as on a violin, then press the strings against the ebony as you would a violin, with your bare fingers. It no longer sounds like a steel guitar, though.[This message was edited by Alan F. Brookes on 24 October 2006 at 05:12 PM.]