Unless either she herself is the type of woman who asks men out, or she doesn't like the idea of dating PERIOD, she is in no position to be making judgments about someone who is expected to do the initiation. It's not like HE's being asked out; with a very few exceptions, guys don't get asked out. HE's the one putting himself out there and risking rejection, while she sits around doing nothing, allowing guys to come to her.
By all means, tell him no. But don't complain about it after the fact. Women generally have a very diminished understanding of what it's like to face the world without having everything handed to them on a silver platter, particularly when it comes to relationships. So, in a sense, it's sort of a classic case of beggars-can't-be-choosers.