This person is/was not your friend.
(No, I'm not just trying to fill out the matrix here. ;)
It's important not to take management too personally. Just because this guy was horrible at understanding motivation doesn't mean he was a bad person or a bad friend, just that he was a really lousy boss. Lots of people don't understand how to motivate others. Lots of people don't consciously understand how to motivate themselves, in fact.
It's probably a good idea not to put up with this forever, but it doesn't mean you can't be friends. I have many friends whom I would never work for. Most of us do, I'm sure.
I've had one job in my adult life go completely sour. I was there for about 3 months and never really found a way to fit in culturally. My aspirations exceeded my role, and I was probably pretty difficult to deal with I imagine.
After I left the company, I thought that my boss would have a lot of animosity towards me. He didn't. Turns out, he knew I was struggling and while he wanted to keep me (I was productive at the very least), he didn't hold any ill-feelings towards me leaving.
As a boss now, I always try to keep that in mind. I inevitably develop personal relationships with every employee I've had. Even when that doesn't work out, I always support them however I can.