Let Him Go
This situation is so painful, I wish there was something I could say that would make it easier, but there isn't. Your best bet is to let your friendship go -- at least for now. Spend time with other people and get to know new people - on or off the Internet. In time, you'll feel a lot better.
This Doesn't Mean You Are Undesirable
Most importantly, remember that this is not about you.
There is nothing wrong with you -- except maybe that you live a few hundred miles too far away from Texas. The fact that he met someone closer to home doesn't make you undesirable. In fact, you should feel good that he was honest with you and told you about the hometown gal instead of stringing you along.
There are SO many great friends and potential boyfriends out there. I predict that at least 2 or 3 are going to have a crush on you. Then, right us back and we'll help you decide which one to choose...
What do you think of Mare's Answer?