He did what he did because he felt it was the best way...I guess he didn't want to drag it out with several discussions feeling it would just make things worse. You did nothing wrong, it was the arrangement that didn't suit him anymore, and peoples feelings dissolve over time naturally. Most relationships are not forever. LDR's should be a temporary situation, not spread over years.
If you feel your area doesn't provide much promise in finding someone to date, them my suggestion would be to relocate. Maybe this would be a good time to do it to keep you preoccupied during your healing process.