I am wondering the same thing as Jane.
That being said, this is what I am reading.
You dated 7 years.
You moved in together 2 months ago.
He has never lived on his own before, despite being 38......
You have caught him looking at porn, but you don't have sex.
YOU are sleeping on the couch in YOUR apartment.
This does not seem normal. Maybe he is scared to be living as an adult? To answer your question, looking from the outside, yes, it does appear to be a bad relationship and I would ask him to move out unless he wants to discuss these issues and change.