I definitely see it as it's someone she really likes but nothing's happened yet - but she wants something to: "A friend too good to go there with / Shake it up and get it on", and "Then you'll finally realise and swoon into my arms" etc. It's obviously a friendship she wants to turn into more, and it's on the verge, but he's not so sure: "And maybe you've not said in so many words / You've always got your reasons / You right little know it all" and she's trying to convince him.
I definitely see it as it's someone she really likes but nothing's happened yet - but she wants something to: "A friend too good to go there with / Shake it up and get it on", and "Then you'll finally realise and swoon into my arms" etc. It's obviously a friendship she wants to turn into more, and it's on the verge, but he's not so sure: "And maybe you've not said in so many words / You've always got your reasons / You right little know it all" and she's trying to convince him.