I agree with you on all accounts. Indeed he should be punished, but in my personal opinion... He will learn more from his friends misfortunes that day than 8 months in jail could ever teach a person.
I used to drive my car like a mad man every time I got behind the wheel. Until AutoX started in the town I live in. It's organized street racing that's legal... so now I usually only drive fast when I'm doing that. (2007 Volkswagen GTi - magnaflow exhaust/K&N intake)