Well, sweetie we all have to acknowledge and accept that there is going to be women/men out there that are more attractive then we are because there are indeed men and women that are more attractive then we are. ... and, just because he found her to be "a babe" your conclusion that he would rather have been with her then you, is not necessarily so and its fueling your sadness so stop thinking that way. He is with you, not her.
Now, as far as his insensitivity goes... he is an insensitive ass and you're finding out that he's not everything you hoped he would be. He does not show you affection, he is crass in his observations of other women and relaying them to you, he is defensive instead of telling you he's sorry and reassuring you that he's glad he's with you and that he loves you.
You have that information now so it's up to you to decide if you can live with who he is or is it time to leave. Dating is to find out if who you are with is going to be a good partner for the long haul (even a lifetime) so this is where you make your decision.
... Just don't make it until you've explained to him how you feel and use your *I* words and not your *you* words.
e.g. "I" feel sad when I hear that you think another girl is a babe" rather then "You make me feel sad.. blah blah" and then don't say anything else and if he starts to get defensive stop him and just say "look, I'm just telling you how I feel. What you do with that information is up to you but I'm not going to argue with you about it." Then change the subject.
If he doesn't change or at least be sorry then that's who he is. Your call what YOU do with that information.
Good luck.
“The willingness to accept responsibility for one’s own life is the source from which self-respect springs.” ~Joan Didion