What Are We?

Here's a situation most women are all too familiar with:
I had been dating a guy for about a month and a half. The last few dates were at his new condo, where he made dinner (he cooked surprisingly well), and the two of us watched a movie. Following dinner we headed to the bedroom, where we may or may not have slept together, but either way things progressed past casual. At least in my mind. And up pops the question that is well-known to the entire female population; 'What are we?'.
I analyzed things with my friends, I ran through countless conversations, emails and texts, analyzing every word and emoticon. I would ask him what he did last night and wonder if he was out with another girl, and if he was, do I even have a right to be upset?
This all inevitably lead to 'the talk'. I told my friends that I had a date, and that this was the night for 'the talk'. If he didn't want me as his GF, then forget him. We had a nice dinner, followed by a movie on the couch (wow things got old pretty quickly). I asked him what he thought about 'our situation'. And surprise surprise, I got 'you're a really great girl' quickly followed by an explanation of why he knew I wasn't 'the one'. Granted, he was a few years older, and unbeknownst to me, was looking for someone to settle down with. I heard a full listing of my good qualities, accompanied by a few reasons why he didn't see it working out.
To be honest, I wasn't that into him in the first place. He is definitely near the bottom of my 'Boys I Miss the Most' list. The points he made were legit; I also wasn't that excited to be with him and the attraction was mediocre. The brutal thing was that I wanted him to want me. I wanted him to want to make me his girlfriend, so that I could be the one with the choice to make.
He suggested that we keep seeing each other, which I stupidly agreed to. I wasn't good enough to be his GF, but I was fine to spend time with until he met a girl who was good enough. I went with it for one night, at one drunken party, and realized that I was laying my ego down for a good stomping.
For some reason women are not good with the unknown. We might be having a great time with someone, but at some point we need to categorize the relationship. I believe in protecting yourself sexually and ensuring he's not sleeping around, but otherwise, why is it so important to have the title?
Please remember: If, and when, you decide to proceed with 'the talk', you must be prepared for the relationship to end completely. Otherwise you're setting yourself up to be walked all over. Take it from me.