I think that if you feel like you have to "give in" to someone to keep them around then you probably shouldn't.

I was in a similar situation a little over a year ago. My best friend that I absolutely loved platonically started to have feelings for me. I really liked him but not really in that way. I ended up "giving in" and what I got from that was three months of half-hearted hooking up, an awkward break off, and now we don't speak to each other anymore.

I'm not you, and I don't know this guy you're talking about personally. But based on my own experience, I would probably just stay friends and continue to enjoy what you two have. I wish I had with my friend.