Kikyou and Kagome share the same soul. So technically, he belongs with either of them equally. Obviously, his soul's soulmate is Kagome/Kikyou's soul. So whether that soul is in Kagome or Kikyou, it doesn't really matter.
Kikyou's presence in the series doesn't have to be one of a romantic rival. I prefer to see her as evidence that love transcends lifetimes and that Inuyasha and Kagome are truly soulmates.