He wants to see me naked in the webcam?

I met this american guy through my work, I'm a tech rep for a computer company. He's divorced (at least that's what he claims) with two kids and he's planning to visit me in august because he's stationed in Iraq. So, he gave me his email address and then the rest is history. We've been sort of talking (chatting, phone calls, video calls) for about a month now. I've developed some feelings for him because he's a really wonderful and funny guy. Well let's just say, he is my dream guy. Most of the qualities I look for is in him. But lately, things were not as it seems. Even though he doesn't tell me directly, I know he wants to get dirty (if you know what I mean) online. And just last night, I squeezed it out of him and he admitted that he wants to see me naked. I was shocked of course because I expected that he really LIKES me more than just that. Then I subtly let him down and he kinda acted weird on me. He started saying things like he hasn't been intimate with a woman for two years and this is the only chance I have to prove my feelings to him. I'm confused. Should I just let him go or should I give in on what he wants?