I know you love him, but the fact is, he's being very clear about what he wants. You'll need to talk to him more about what he considers boundaries and what the nature of the relationship will be. Will you continue to be intimate? I would advise against it, if he can't think about you while getting his life together, then he shouldn't be sleeping with you. Will you remain friends and go out/hang out? Thats a hard one because hanging out can lead to other things sometimes. I think if he need time, you should give him time. If he really loves you then he will be back. You may want to talk to him about how much time he's talking about, so that you know where to go from here, you can't be put on hold forever.
I welcome your thoughts, let me know if you want to talk more.
I agree that cutting contact for a while is probably the best thing....but most people are unwilling to do that. Its a thin line between him not wanting to be in a relationship, and you stepping back far enough to hurt his feelings. Do what feels comfortable to you regardless of his feelings. I personally think it sounds like you've got a good grasp on things, and that you're handling it well. I'm here if you want to talk more.