I would say this is probably the minority of guys. There are some this is totally a turn off to, and there are others that are in complete denial, and yet others that have decided to just go with the flow even if they feel guilty about it every now and then.
I had a friend a long time ago that loved porn of any kind, jacking off together, watching flicks, even doing a little toy play a few times (but nothing to intense), Yet he would have no part of touching a cock or having his touched by a guy. I just couldn't see the line he had except maybe a mental block that kept him from going those last steps. He really enjoyed us watching porn and jacking off together, but no touching each other.
I think your friend just needed a little push to get him over the edge. I can understand kids jacking off together and not touching, but I just can't understand an adult that would just want to jack off with another guy, and not take it further.