If the car is in perfect running condition, the engine shouldn't be damaged during long idle. Unless, the car is infact idling for possibly hours and hours (I would say at least 5+hrs) you would expect to feel some damage, but very minimal. At idle, your vehicle is running at it's lowest horsepower and torque ouput thus creating a much lesser need for gas, oil, air, etc... The vehicles PCM will notice any effects and changes in the engine and would compensate for any changes necessary.
Think about it this way, let's say you're in Houston, Tx; Hurricane Ike is about to hit, and everyone's stuck in traffic waiting to leave up north. Half of the people in traffic would tend to leave their vehicles on, and idling. While the smarter half would turn off the car to save gas. Let's look at the people with their vehicles on and idling. They are most likely stuck in one position for at least an hour before they get to move what, 1 feet ahead. During this time, the computer controls the air/fuel intake to a minimum, why? Because you're not moving! Blah blah blah... Blah blah blah...
Now, I can understand why your friend said it was bad; this is how, and it's very possible in our older vehicles. If the car is idling, lets say 5 hours, there is a possibility that the oil pressure is not high enough to pump oil through the engine. This can cause lack of lubrication. Just like anal, if you lack lubrication, it's going to hurt. The only reason why the pressure wouldn't be high in the first place would be because the car is at idle and the RPMs are usually around 600-900. Etc... Blah blah blah, blah blah blah...
Now, go out in your car and try this. Turn your car on, and let it idle... Let it idle for a good 10 minutes or so, now every once in a while, you'll see your RPM needle move slightly either UP or DOWN. This is, as you know, your revolutions per minute blah blah. The computer notices whenever it drops, or increases and tunes your car to be at the set idle. Everything else all goes together, your oil pump, your fuel pump, your injectors, your stroke, your rpm, everything all works together to either increase or decrease the velocity and viscosity.