Dude, you came back to your hometown a second time but still couldn't confess your feelings? Nao, that's sad. I mean there was never any way he would become a couple with her, but getting it out there helps move forward when it hurts to stand still after all this time.
And if she gets with Ikuo, I'll be even more annoyed with this series. He seems okay at best, but settling for the little brother would be weird and confusing.