He wants to be friends that DON'T see other people

I've been with my boyfriend for 2 years. We are both 21 and live almost 2 hours apart. Everyhting was pretty much perfect until recently. In the last 7 months or so things have started to get rocky because of the distance and he has been busy with work and his dance group and we have less time for each other.
Yesterday we talked and I asked him what he wants to do about "us" because we weren't seeing each other very often and fighting a lot....I asked if he wanted to stay together or just keep it cool for now.
He said he would rather be friends for now until we get our lives straigtened out and then come back together.
He also said he does not want either of us to see other people and he still wants us to hang out and see each other over the summer. He has a trip planned for the summer that he still wants us to take.
I love him very much, and i don't want to see other people, but if I can't have that "girlfriend" title I really don't want to be commited to someone.
Im not gonna go looking for another guy, but I want the option.
I feel like If we are doing everything couples do, why not just be a couple.
Am I thinking too much, or does the seem the best thing to do for now?
I do eventually want to settle down with him, but i don't want to wait forever or be stupid for settling.
In his defense, he is gonna be busy this summer, he just made an audition for a dance show and is really focused on that.
I know he loves me, but is he being selfish by kind of making me wait until a relationship is convenient for him? or am I being selfish by wanting him to be with me before he is ready?
I do agree that we both need to work on some things, but a huge part of me wants the relationship part back..but without the distance and arguments.
Sorry if this is confusing, but i am really confused.

He wants you to be exclusive friends? If you don't like it don't agree to it, full stop. You are always entitled to say "Well, if we are not in the relationship, then we have no duty to each other". Just be ready to let go. It's a lot easier and less exhausting to either be in a relationship or be single than to be somewhere in between.

He can call it "friends" or anything else, that doesn't change the fact that when two people are exclusive, they are still in a relationship. His idea doesn't make sense. Suggest taking a break.

It sounds like he wants the opposite of an open relationship. In that he doesn't have time to perform his boyfriendly duties but wants to make sure you are still around for his emotional needs, and then when he sees you his physical ones.

Long Distance relay's are hard. Really hard. Especially since it sounds like you guys would still date and shit if it weren't for the distance. My first bf and I ended because of distance, it just eroded us. You can't be intimate through the phone. I've heard some people say that webcams help alot.

If this regresses, it's not going to go back to what it was. The best thing you guys could do would be to just end it, not talking at all, and then see what happens when he is around again. That will give you both space to explore, but end it friendly enough that you might still have a chance if you cross paths again. If you try to make it work, it might kill your chances.

Thank You everyone.
Rollerderby, what you said sounds exactly right, and is what I will most likely do :)