You definitely handled everything correctly and admirably. If this had been me, I'd agree with her that being friends was OK, but I wouldn't pursue it. It hurts, right? It wouldn't work for me. Don't get stuck in a rut of being friends with you hoping for more. Smells like rejection. It's like a person saying they're all for halfway houses but not next door to them. So they're not in favor of them. If she supported you, this wouldn't be a deal breaker. It's easier for her to pretend her support if you're "just friends." Screw that. Move on. You WILL find what you're looking for, and it'll be better than this ever could have been.
