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Am I making a HUGE mistake?

So I've liked this friend of mine for a while. We have been haning out a lot lately and have a couple of things planned together for later this year.

I recently confesed my feelings to her and was she pretty much said lets just stay friends (without actually saying those words) as she likes it that way and isn't looking for anything more.

We've had a few awkward days but she has now contacted me and said she wished I never told her but she hoped we could hang out soon. We talked a bit and agreed to put it behind us and move on and have arranged to hang out next weekend.

Is this the mistake? I obviously love spending time with her so dont want to lose her as a friend. However pretty much everything I've read online says if I have any self respect or want any chance of being with her I should be cutting ties from her and make her hopefully miss me. Do you folks agree with this?

Is staying friends going to make it impossible for me to move on?

Is it stopping any chance of there being more? I have to admit there is a small part of me that hopes if we keep hanging out she changes her mind (pretty certain this is stupid so feel free to agree).

What do you guys and gals think I should do? She seems keen to keep hanging out and even seemed to be missing me already, is there a chance she was lying about not seeing me the same way and she just isn't ready to have more and us remaining friends is her way to keep that door open?

Sorry for all the questions but I would like peoples thoughts on this and feel free to call me an idiot if you think im being one.
Updates:
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Anyone ever made it workout after this kinda rejection? Or even just sucessfully remained friends?
Am I making a HUGE mistake?
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