curly, i guess a lot of this depends on what happened six months ago. Giving him the benifit of the doubt here, so playing devils advocate. Perhaps he really wants your sex life to get back on track and was trying shock tactics?? Men can be pretty dense sometimes (so can women) about communicating.
Why is there a trust issue? How long have you been together? Do you want things to work with this man or are you staying with him because you are scared of being alone?
To be totally honest, whilst sex shouldnt be the be all and end all in a relationship, it is pretty bloody pivotal. It is about intimacy and loving as well as orgasms and bump and grind. I find that my partner and i get on much better when the sex life is good, of course the sex life is better when we are getting on better, iykwim.
Is it that you just dont WANT to have sex with him, or is it that he has hurt you in the past and you feel you CANT? I often dont feel like sex because im knacered, but that is different to not wanting it.
I dont think you are being unreasonable, and if your DH is seriously considering this then i think he needs to be shown the door. If it was just shock tactics, then he is a dickhead but maybe it would be worth entering into negotiations, as it were. At the end of the day, do YOU really want to be in a sexless relationship?