Do you think I handled this situation correctly?

You could be friends with this guy, only if you wanted to. I think you handled the situation maturely and quite well, I would have done the same. But if you are open to a friendship, don't be fooled, I have come across many people that have put me in a similar situation and I'm not going to lie, I have put others in the same, and it's all for the desire of being desired. Or he's just scared about commitment, whichever way you want to look at it. If you think you can't be friends with him then don't, there's no one saying that you have to. He's just another drop in a bucket of water, there are plenty more guys out there more deserving of your attention and friendship.