I've always wondered about those frames. Is it like this one?

http://www.bikecult.com/works/archive/pana7000.html

And is it actually aluminum? Does a magnet stick to it?

Your buddy is talking about modern, stiff, aluminum racing frames with oversized tubes, which tend to have harsh rides. There were some lugged (bonded) aluminum frames in the 80's and early 90's that were rather flexy, but gave a relatively smooth ride, and usually came apart at the lower head tube lug after a year or two. Bridgestone produced one for a few years, and a Vitus 979 was the coolest frame around in the 80's.

The Panasonic's lugs look too small for bonding - do the tubes fit inside the lugs, or is it more of a seam, indicating the lug is inside the tube?