Was my friend given misinformation.

Who among us started out with the system we have now?

Give the guy a break and let him learn the way every one of us did: trial and error and triumph! That Denon/B&W system will sound way better than whatever he’s used to and will be an excellent introduction to all the features and switches.

I say it’s impossible to buy any system at any price and thereby assume the identity "audiophile." Doesn’t audiophilia require experience? Can you "buy-in" to the hobby?

Stuck in the back of a big box like Best Buy, Magnolia is definitely NOT the place to audition a competitive 2 channel system. If I were working there, I would have sold the guy pretty much the same stuff. I guarantee that system was good for everyone involved: good sound, good reliability, probable WAF, profitable, in-stock, solid stuff that can be enjoyed for years and then be a good value on the used market.

He will most likely be very happy and ,With that Denon,he can add some External Amps down the road to add some more wattage if he thinks he needs it.Maybe a couple of Subwoofers.too?As mentioned above"it was in stock!"

From the perspective of an audiophile, your friend was certainly given misinformation.  However, it doesn't necessarily mean that the salesman wasn't giving the best advice based on his experience as a salesman.  It all depends on what your friend is looking for in an audio system.  I would anticipate that the majority of customers are looking for features and are not discerning enough to appreciate the difference in sound quality between a good integrated and a receiver.

It's been more than a decade, but when I purchased my Focal 836v speakers I quickly discovered that my Onkyo receiver wasn't up to the challenge.  I ended up purchasing an Integra 50.1 receiver and actually still use it in my home theater setup.  It's really not a bad place to start.  The Denon AVR-X3700 is 4 ohm stable, has plenty of power, and has preouts so your friend has options and will likely keep this unit for a long time even if he gets itchy to move up.

As audiophiles we have to be careful to give advice that is in alignment with what are friends are wanting.  It's easy to get carried away and recommend things that we appreciate but are way beyond what they really want or need.  I'm not saying that you did this, it's just something that we all have to be aware of.

The real test will be to see if your friend is happy with his gear or wishes that he's gotten something different/better.  I'd suspect that he will be very happy and even though he may not have gotten the best deal, he may be happy for a long time to come.