Thanks for your question. My name is XXXXX XXXXX I'd like to help you out.
It sounds like you were correct to suggest counseling to your boyfriend. Often times the problems that he is having with being intimate would not have anything to do with how he feels about you, or how attracted he is to you. While I can certainly understand how his inability to be intimate would hurt you deeply, most likely it is his own personal issues that are causing this, as opposed to something that you've done wrong, or should be doing differently.
There are a lot of possible explanations for why he is having these problems. Sometimes just going through some periods of extreme trauma, like losing a house, girlfriend, and father, can be enough to send someone into a depression that makes it very difficult for them to feel capable of being intimate. Other times it can be a self esteem problem, or he could be self conscious about his own looks or ability to perform. The other common explanation for this type of behavior is if he has been abused in his past or has had some very negative sexual experiences that are haunting him. There are other possible explanations as well, but these tend to be some of the most common reasons that people have this issue.
No matter what personal issues he is struggling with, you are approaching it the right way by being patient and working with him a little at a time. For now, that may be the best that you can do until he meets with a counselor and is able to get a better understanding of why this is a problem, and what you can do to help. Of course this does depend on him making a legitimate effort to try and overcome this issue. While I can respect your patience and willingness to give him another chance, it is important that he starts taking responsibility for this so that you at least know there is hope for this to improve. Otherwise if there is no end in sight to this problem and he is not working on it, then it is only understandable that you would start to think about moving on.
I definitely wish you the best with all of this, and if there's anything else I can do to help please let me know.