No, she is not confused. Move on. You made a little bit of progress in that you slept with her. Now that is off the table. However, sex really does not mean anything unless you are in a committed relationship, WHICH YOU DO NOT HAVE.
Questions to ask yourself:
1. Can I go on like this?
2. Can I trust her?
3. What do I want in a relationship?
4. Is she able to provide what I need?
5. Am I able to provide what she needs?
You have to be TOTALLY honest in this. I honestly don't think that she is capable of giving you what you need.