People keep thinking Haruhi is pursuing Kyon and Kyon is totally oblivious to Haruhi's affections...Not true. By the end of Melancholy, Kyon realized the truth...
...and didn't care.
As for ItsuKyon...Never gonna happen! This is fangirlism!
And there you go.
Kyon's not the type to be "in denial", anyway, because he calls himself an "easy-to-understand guy".
So, what about Yuki?
In Disappearance, Kyon even grabs her hand; Yuki pulls his sleeve; in Charmed at First Sight LOVER Kyon even states his jealousy over Yuki being "curious" in Nakagawa and Nakagawa being in love with Yuki; Kyon goes into the impact of her in the Disappearance arc and her sleeve-pulling; he even says that:
Why are YOU in denial?