Are things getting better, or am I wasting my time?

As I posted about a month ago my bf of 3.5 years told me that he still loves me but is not in love w/me. He was having an "inappropriate friendship" at work, but that has ended and the girl is now out of the country for a month, and then leaving permanently in Aug. For the past month, we have been arguing and not resolving anything. Finally, we had a great conversation and he told me that it could have been the stress of me moving in, work/school, and other changes going on all at once. He said that his intimacy problem could be from his past as well as a reaction to the problems we are having. He told me that he likes hanging out with me and loves me, but right now he says that he sees me more as a friend than a g/f, which could also lead to the intimacy issue. We have talked a little bit more these days, as well as had more than we've had in a while. I know things are not "fixed", but do u think we on the right track or should I save me time and heartache and end it now?