And finally, you have to ask for things to get them. If he just quit without asking, he'd never know if he could have gotten that raise instead. Now, he knows. At a different company, he might actually have gotten it.
I think he made exactly the right decision at each step, given the knowledge he had at that point.
Personally, I probably would have chosen to stick it out at that company until I found that second job, instead of quitting on the spot, but that's me. But the end result wouldn't be that different.