My DH is the same (and to be honest i am a bit as well) we both can't get past the fact that there is a 3rd person involved It doesn't help that i have a very active and responsive bump.. its very off putting to look down in the heat of the moment and see my belly moving around
But that said i don't see why your DH doesn't want to even give you a hug or a kiss, i can see why you're feeling rejected. I too like my cuddles and kisses with DH and i think i'd be devistated if he didn't want to give me any offection. Just because he doesn't want to get frisky doesn't mean he can't still show you he loves you with kisses and cuddles. I'd try talking to him again and telling him how you're feeling. Maybe he doesn't realise just how much its upsetting you? Sorry i can't be more help.
to you