Have to agree with some of the posters here.

How do you feel about this? Do you still wish to be friends with this person?

Based on what you've told us, I have personally observed friends be like this towards each other. Physical touch, expressing love, flirting, but are just friends. So he may not have been intentionally misleading you.
Whether you misread anything, well, he didn't give any indication it wasn't serious. Even if you did misinterpret some things though, it doesn't detract from how you feel.

Even if he didn't realize what he did to lead you on. He could have simply apologized that he hurt you, and that it wasn't his intention to lead you on. Instead, he deflected the blame on you, invalidating your feelings and showing no compassion or remorse.

If you don't want to stay in touch with him any longer, or stay away from him for awhile, that's completely valid as well.

Im curious though. Did you ask him out? Or did he bring it up himself reasons why you can't date?