Update:
I just talked to her and told her I agreed and I put all the blame on myself. Told I jumped the gun by pursuing her too fast and wining & dining her like she was my girlfriend. I told her we should just chill on some friend vibe like she suggest. (That's not want she suggested) lol. She instantly started coping pleas. Saying how she hope she hasn't changed things and hope we continue to spend as much as possible. And how the attraction is there but she knows kissing can lead to a lot more. So she wanted to slow down until we got to know each other more.
Once again I put the blame all on me. How I shouldn't have been pursuing here as fast and taking her out to eat and treating her like a gf. (Knowing that's exactly how she wants me to treat her). After a brief silence, she quietly, sounding regretful says ooh ok. I could her the disappointment in voice. We chatted a little bit longer and I told her I had to go.
Basically she wanted to indulge in the girlfriend treatment I was simpishly providing, but wasn't ready for the girlfriend requirements. I feel a lot better now, we can still kick it, but there will be no expectations. And she getting pushed way back on the depth chart.