The only way folding AA PF is correct here is if the guy is not playing poker for the money. That is to say, he values the entertainment of playing in a $10K Main Event more than the money that can be made by winning it. It's probably not a problem since I happen to think it is ludicrous to be playing poker for any of these reasons, but no one on these forums ever really considers any of these factors.[/devil's advocate]

That said, your friend should be shot.