'no lets just be friends' is just a polite term for 'i'm not really interested,' romance can develop from friendship quite nicely.
ding ding ding we have a winner
You know how a lot of guys have that girl friend they think is really cute? Yeah, chances are if she said "hey let's go on a few dates" or similar, they'd probably say yes. The same thing applies for girls. I was friends with my girlfriend for about four months before things turned romantic.
Just as a quick hypothetical, imagine if your not-so-attractive lady friend started hinting at a date. You'd probably ignore her advances and pretend like it's friendship as always. If she asked you directly, you'd probably pull some sort of friend card. Maybe take her on a date kinda out of pity. This is what girls do to guys all the time, and if girls asked guys out more often, guys would be doing it more too.
So in my opinion, the friend zone doesn't exist, or if it does, it can be broken if you're attractive enough. It's become a dating buzz word though, and it drives me crazy.
And for Eraddd:
1. As I mentioned before, I was friends for four months with my girlfriend before dating her. 11 months later, the relationship is pretty strong despite my ramblings in previous posts in this thread (goddamn I am embarrassed).
1a. I guess you could say I was somewhat friends with my ex before we started dating. We used to hang out on occasion in groups. That relationship was also decent (11 months) until the very end when she discovered drinking was a thing. We ended up breaking up because of college. After we broke up, we had probably two friendly online conversations that spanned 10 minutes each, and then we never spoke to each other again.
2. My first/only rejection came from my first attempt at dating. She was a nerdy girl but hey, she was kind of cute. She said she was starting to see someone else, which I thought was a "ew no not you" until I actually saw the Facebook relationship status go up like three days later. Their relationship was actually pretty significant and went on for about two years, so I'm not feeling so bad about myself on that one. Still, to answer your question, it was VERY awkward for a while for me. She was the first girl I ever asked out, and being rejected on your first run is a painful and enlightening ordeal. I ended up distancing myself from her to make it easier on myself. Eventually we ended up talking again, but for a while, I kept away.
And as a side point for anyone who might be fearing that rejection, it's really a rite of passage. You learn so much about dating. You'll find that rejection isn't really that bad, and that there are so many viable girls. I owe a lot to that first girl in terms of what I am today and how I interact with others, especially in terms of the opposite sex.