would you rather remain silent preventing some supposed hurt today only to be forced to be honest with him later, possibly making it worse or would you rather be honest now, taking that chance (he will be hurt in any way you do this anyway) and give your friendship a chance to move on and be something better?

Mind you once someone has the desire for something more in a relationship and is turned away from that idea it's always going to be hard to move on from that and just be friends. Not at all impossible but, hard for the person with the feelings so keep that in mind.

To be honest I'll get right to the point, if you dont' say anything and you pretty much know how he still feels you are going to end up leading him on in a way by remaining silent. The right thing to do really is being honest and up front.