From what I gather I'm interpreting this slightly differently to other people

The first few time I heard it, I thought it was quite contradictory (much like the first time I heard Anything for Love by MeatLoaf- it does actually make sense), but after listening to the lyrics a little closer (and considering the title), you realise they are infact very good.

My interpretation is more of a 'too close friends' sort of thing, 'I love you too much as a friend to love you like that' (One of those things that no-one believes makes sense until they are in that situation)

However it is interpreted though, it's undoubtedly a great song, but I will readily agree that it could have been a lot better. After all, it wasn't actually released on a studio album!