Sounds to me like you're working this through just fine. Sounds to me like you just got a bit blindsided by the apparent change in the relationship and then the second thoughts that seemed to follow. It could be he doesn't feel that the "more than friends" relationship would work out. And that's OK, too--he might not have realized it until it headed in that direction. It happens. One person re-thinks.
But either way, try not to let it throw you too much. Life will go on.
Hugs!