Unfortunately this is the really more the norm than we would like to admit. I truely believe we need to name these dealers, we need to where ever we can publize these true stories.
In your case with your friend I would take every action available, huge pressure on the dealer, pressure on HD Customer service & I would take it to your Bureau of Automotive Repair, this just verges on complete incompentence and criminal intent.
We are all to complacent about accepting this, just like your friend. This is what the dealers count on, we will pay the bill & go away.
Not to steal the thread but I had a similiar experience recently & I think I posted about it. I took my 06 CVO Ultra in to Scottsdale Harley Davidson in Scottsdale AZ. I had a bad stator, I have a 7 yr extended warranty, I had already checked the stator & one of the phases only put out 6vac max. I took it in & told them I had a charging problem.
I fought with them for an entire week, they said no problem it charges fine, you just turn on too many accessories at one time. Now bear in mind this is a 50 amp system, the CVO came with heated grips, heated seat and such. Their answer was it stops charging because there is too much load.
So I asked them how they calculated too much load, well by turning everything on and it stopped charging, thus too much load on the system.
I offered to teach them how to calculate loads and current against what the alternator was rated at. Well you can guess there answer, our techs know how to do that.
At least 10 times I asked them if they performed the simple stator test, nope never, not required because it was charging when there wasn't too much load.
However they wanted despertly to open up the cam chest becasue of the noise (Gear Drive Cams) and fix the problems in there. Money vs Warranty and stupidity, I suspect they thought it was the old cam chain tensioners.
I went & picked the bike up, no work done, and took it 125 miles to Steve at GMR, well you know the rest of the story. New Stator & regulator, under warranty, and replaced with a Cycle Electric Stator, quick, easy, professional.
I complained bitterly to Scottsdale HD but they were in the middle of the sale of the business & no one cared.
Oh, sorry... rant off.
PUBLISH THE DEALERS THAT DO POOR WORK, we can impact their business!