I'm so sorry..... I would guess more bi than gay [have a look ant the Kinsey scale] although, as a heterosexual person, I don't really know what it means if he was OK with touching and kissing you but still identifies as gay. I can only imagine that he did some soul searching and had to ask himself whether he could really offer you the relationship that you are looking for and decided that he could not. He did this for your sake.

I'm sorry things didnt work out how you planned. but at least you had the balls to do something about it instead of pussying out and wondering "what if."

Well, look on the bright side. He’s gay, that just means he doesn’t find your gender attractive, not you personally. And at least he cares enough about you. Maybe you two will still be good friends in the future. Don’t rule it out.

No, bad OP. How would you feel if a friend of yours just walked up and kissed you? It's not ok, use your words and get consent.