Friends w/ Benefits vs. Officially More Than Friends

Ok so I've been there, you may have been there, and my friend Dani is there as we speak. She's been with this guy on and off, and now, in the midst of being off, this guy decides that he's not ready to be technically "on" again. He doesn't understand why they can't just be friends and still maintain the physical part of their relationship, which is arguably the same as what you'd be doing in an official relationship. So the question is, should Dani be satisfied by this ambiguous relationship or should she demand a title?

If I look at this situation objectively I might assume that this guy of Dani's is awfully suspicious for not wanting to go public with their relationship, like maybe he's hiding something...or hiding her. However, knowing the guy I verify that this is definitely not the case. He clearly loves her, and she loves him, so what could the problem really be? He claims he's unsure of what he wants, but what's the difference between wanting to be Dani's boyfriend and wanting to be together on the down low? He's obviously confused, but maybe Dani should just tell him that he needs to figure things out before she puts herself in this situation. If she cooperates with his plan then she's risking being vulnerable by being physical with him, and meanwhile there's no guarantee that he is even committing to her enough to be there for her in other ways.

However, the bottom line is that these two are in love. Isn't that all that really matters? Shouldn't she be able to be there for him while he's figuring out what he wants? He claims to be afraid of growing up, which could potentially correlate that he's afraid of committing to a serious relationship. Keep in mind that Dani was the one that ended things the last time they turned "off" in the heat of anger over an issue that her boy didn't even know existed, and before that they had been perfectly happy. Maybe he just needs time to trust her again and make sure that she really wants to be with him, so he's testing out the waters before he risks getting hurt again.

What do you think?