@EggHead,
You asked in your intitial post
"I'm curious what everyone thinks about this & how they would handle it?" I, and others have told you what we think.
However, like a lot of posters who start relationship threads, you're just looking to find someone else to agree with you.
You call her your "would be girlfriend" and have also admitted you don't know a lot of things about this situation.
Now she loves you all of a sudden?
Obviously no one is going to change your mind about anything, not as if we're trying to.
You want what you want without knowing all the facts, and turn to complete strangers to tell you what is going on in 2 peoples mind (the woman and the father of her child). How are we supposed to know?
Really, do this woman a favor and get out of her life.