Definitely not a good boss, but possibly still a 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.