TL;DR in bold.

My GF (28f) has a family friend (38m divorced) she has known for her entire life. However, when she was 20 they had a brief sexual relationship.

They rarely communicate via text for Xmas, bday, and given their families are neighbours see each other once a year during the holidays.

We've only been dating for <1 year and although she's replaceable, she's a good woman with promise - smart, very good looking, good genetics for children, and her family is very established.

I stated, it's a personal boundary - one she expects of me too. She stated it was controlling and that despite 10 years ago, they have only been friends. I said I'm not controlling, I said she can keep doing so but I'm going to have to date someone who shares my values.

I've stated to give me a day and I'll drop by her place tomorrow at 6pm to talk (pick up my things).

Her messages since have been panicked, remorseful. I'm 30 and don't want to date a woman where the obvious has to be stated. I have a high SMV despite this, she's pushed back. My question is this, tell her the turn with me is over or compromise given the context?