How to Achieve Happiness

So, as you are by now aware I'm in a love/hate relationship with a guy in my school. Recently things have been going better then usual with him so I'm pretty content. I don't want to get my hopes to high since he seems to shatter that every time I do, but I'm not going to complain.
While talking to a friend today, I stated something that even shocked me, I told her I'm willing to settle for what we have then to lose him altogether. I no this seems pathetic, and low of me, however I'm content with it. I've come to the conclusion that he will never give himself entirely to me, its physical but we are friends. I probably cannot rely on him in the way that I was able to with my ex boyfriend, but I also never felt such a pull towards my ex boyfriend like I do with him. So what does one do?
My best friend is entirely apposed to this situation and has resulted to trying to set me up with someone in order to get me away from him. She believes he treats me like dirt and I deserve a whole lot better. Maybe shes right, but if I'm happy with the situation as it is right now, is that not enough. Even if by societies standards the situation I'm in would be classified as used and uncared for, shouldn't I be able to remain in it if I'm happy. I achieve I reasonable level of happiness with sticking around for what he is willing to give me, is that not enough?