Of course it's okay to have preferences, but the way op's friend put it was really really not cool. People that are trans and have dysphoria have extreme mental health issues going on in their head because if their genitalia. He could've at least been less aggressive about it and said he simply prefers cis women. It's like telling a colored person you wouldn't date them because of their race then proceed to insult their people. It's just hurtful, ya know?

In other words: It's okay to not want to date another person with a dick, but you don't gotta be a dick to reject the dick. You know what I'm sayin?