Couple things:
First, no offense to the dude above, but those two bikes aren't really anything alike, get the geometry specs and you'll see.
Second, the merciers are as much bike as you're ever going to get for three bills. I do beaters for people here in chicago all the time, and even with working bikes or garage sale frames we rarely get it done for that little. Perfect for your buddy, though as somebody pointed out he will need to learn to adjust bearings. No big deal, $15 in tools plus a night at west town bikes or a six pack to some local roustabout wrench and you will be set for life.
Third, you can get more bike for more money, but it sounds like you don't really need it. And I'll take crap for this, but the pista is $500 worth of bike and $150 worth of bianchi logos.