It's the difference between being a temp and being a consultant.

Your friend thinks of himself as a temp, and thus is in a commoditized race to the bottom with with cheap labor overseas.

I'm an American freelancer, and so is everyone else I interviewed for my book (shameless plug, see my profile). We all make near-or-greater-than lawyer salaries freelancing for American companies. But we see ourselves as consultants, and are perceived as consultants. The value we provide goes well beyond being a warm body in a chair during office hours.