No relationship is fairytale-like - it only
apparently seemed so and we revel in them in a fairytale-like
manner.
In fact, to me, chances are, he is already reconsidering this
relationship, days way before he popped the shattering news and
announced that he wants out. You can't spawn something out of
nothing; surely, there are unseen issues going around without your
knowledge that is affecting him subconsciously.
A seemingly smooth going relationship, at times, is not a good
absolute measure for a relationship (especially if scant emotional
communication and deep conversation is relatively amiss)
He spoke about incompatibility and differences - what exactly are
these differences? How difficult are those challenges? Are those
challenges/difficulties recognized/understood by you as well?
Uncovering the above questions might resolve much of your conundrum
unknowingly. I will explain why below.
There are times in a relationship when people start reviewing their
relationship, even if the ride went on pretty smoothly devoid of
emergency break. Ironically, their horror came to them as 'far too
good of an experience to be true' and they want to retrograde few
steps back to decide if it was really true. This is uncannily true
for relationship citing incompatibility as a reason to end it,
actually having incompatibility belonging to insignificant
magnitude that shouldn't
induce break up.
Of course compatibility is relative and subjective to individual
perception. It becomes a quagmire only if love is not substantial
enough to surmount challenges. If Love makes a fool out of
human, then the fool has the greatest of courage because a fool
knows no danger.
Then came the sweet aftermath; so tender the feeling he exude and
empowered strongly in your soul, paradoxically, only to inflict
more confusion in your heart.
He works to retain your emotions for him, yet he's not willing to
face the challenges of 'incompatibility', as reasoned by him, with
you in union. So self absorbed his affection for you as he has
removed the source of burden and tacit responsibility he had to
shoulder as a boyfriend previously, yet he's reluctant to allow you
your needed recovery to take flight to your next phrase of
life.
His act of 'goodwill' actually bring calamity to your long term
growth if this persisted indefinitely because you will always be
emotionally bounded by him.
If you can't handle it, then avoid putting yourself in such
predicament. 
Cheers