Am I doing the right thing by letting him go?

I think I need advice. There this guy, shy guy. He kinda rejected a date, but said that he wants to stay friends and keep in touch. The thing is he never acted as friend... He never speaks to me, only if I ask him something, he is uncomfortable, replies with one or two words and looks for the exit or runaway route. He calls me only bit drunk (says nice things, calls me sunshine, how we should hang out and how nice friend I am to him as he even started to smile), sometimes completely ignores me (telling he is busy), twice even saw him sighing when he saw me. Once I called him, he didn't answer and never called back. So I stopped every attempt on him, as I got the feeling I annoy him. Oh, we work in the same place but not in the same department. Now I try to sit with my back to the hallway he goes down out for smoke, I try not to look or even glance at him, try not to bump into him. The thing is I today just saw in glass reflection when he passed me, he looked at me briefly and then looked at floor, smiled slightly and his arms were crossed, but I think he wants to see if I'm looking. I avoid him now for a week and if before he went out for smoke not very often, now he does it every hour and tries to speak loud with his co-workers when he passes my desk. I just can't figure weather he feels like can now breath freely as he knows I won't make him uncomfortable anymore or he tries to get attention. Is he really that shy or really not that interested?
Am I doing the right thing by letting him go?
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