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Should I hang in there and hope that he will continue to get better slowly but surely?
No.
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... or am I just kidding myself?
Yes.
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Will I ever be able to trust him?
No.
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Some of my friends think I'm expecting too much of him. Is this true?
Yes.
Now, having answered your questions simply and honestly (you knew those answers, too, didn't you?), I hope you have some questions that are solely about YOU. We can't help you with him, we can only help you with YOU.
The same is true for you, you can't help him much with HIM. You can only help with YOU. You date people to find out what LIFE would them would be like. Now you know.
Love is beside the point for this part. This is about you choosing the life you want. Stop dating the guy you want him to be... you're dating the guy he is. If you stay with him, you are marrying the guy he is. Nobody, not even you, think he'll ever be the guy in your head.
So, what now?