No, I agree, I think he saw it that way. I think they all saw it that way, or were smart enough to spout the party line. It is pretty amazing that Euros, John, Gareth, Julie Gardner, etc as well as RTD all were selling this as a love story. Not because of the tragedy, because, well, tragic love stories are some of the best-selling shit around. Just because of the way the two characters interacted.

I believe Jack did love Ianto, even if the writers didn't let that through a lot, but that's mostly because I am told he did and I have amazing fanwank handwaving skillz.