I suggest you go on a forum where other guys with the same problem discuss this. I saw some page with a guy talking about his 'micropenis' on tumblr. His was about 1.5 inches erect, so if he's doing well with that, there is no reason you can't work with your 2.8. How is the girth?
Since a lot of men are hung up on their penis size and worry about it, I assume penis enlargement surgeries would be a lot more popular if they were often successful. I heard a doctor say that once a guy has really gone in-depth with the facts and learned about the risks, he will never go through with it. I'm sure there is the occasional Beverly Hills super-surgeon who can do wonders though, you can look into it if you're okay with risks/money isn't an issue.
I'd say the same as others have replied - get really good at oral and using your hands.
The 'size' issue is very hyped and most of the time, I find a too large penis much more problematic than a small one. However, I am quite 'narrow' down there - an average sized penis can often hurt me if he goes too deep. I have friends who genuinely care about size because they need more (that is not just girly talk, I know they are being truthful), so obviously women vary in this respect. There are some women who will find your penis slightly too small for physical pleasure, and some who will find it just fine. Obviously as it is below the average size, there are more women who will find it too short than if it was larger - but you know that already (just being accurate here, I see no reason in serving you bull**** if I'm going to be helpful). My point is - people are different sexually, and I am sure some women will fit you, either because she finds your penis size suits her, or because she is more into oral sex (which is not entirely uncommon, 90% of women need clitoral stimulation to orgasm, and most men can't get there through penetration anyway).
For the future, I don't think you need to take 8 months before having sex. The idea that you form an emotional bond before sex is a good one - I'd recommend that to anyone interested in a relationship actually. But 8 months is perhaps a bit too long. You got to know her well, but you were still hurt by her reaction when you first got naked (indicating you didn't know her as well as you thought?). You will get sexual eventually, and there is no way you can 'lock' a partner in to prevent them from ever dumping you. Same as a girl can get commitment from a guy before sex to decrease the chance that he'll abandon her, but she can never have a guarantee. As a result, you probably feel like you've wasted 8 months on a no-good girl. Next time, do as before in the sense that you get to know her and all, charm her properly and as before - talk about the sexual stuff before you do it. But when it gets down to it, don't be shy about your first intercourse - confidence is important to women, and there is a chance that your insecurity is more of a turn off than your actual penis size.
Good luck!