What does she want from me?

You are definately right:) you are only protection yourself from being hurt and she should respect that! I think that she may have had feelings for you too, if it's that hard to give you up and that she is willing to fight for you. In a way you are also protecting her, she may get so infatuated with you that she may do something drastic if your relationship as an actually couple did happen ended. So I would just do the same thing you are doing. It's hard to give up someone you love by choice to protect yourself from future pain:) I respect you a lot.