See, the whole disaster with Katherine (and Elena) in 2x01 is actually WHY I think Damon would be a lot more cautious now. (And after that fiasco, he only allowed himself to be vulnerable to Elena in situations where he could either take her memory away or die afterwards. *g*) I don't think he'd necessarily ~walk away~ if Elena made a move, but he might give her a lame "we're better as friends" talk, lol. That said, Damon is hard to predict. I can see him giving in despite his better judgment. WE'LL SEE.
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