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I think he means your friend should pay and get his own hosting, not you.
I personally would recommend getting the power account, as long as your friend doesn't want cPanel access.
To just add on a domain though, is a $15 one-time fee, on the account you are on.
If you do want to go to a reseller account, bronze is cheaper than silver.. And what is cheaper isn't neccisarily better. I just know that resellers are more expensive per space/bandwidth unit, due to the other advantages they have (like unlimited domains)
No one can really tell you want to do... All of the solutions are perfectly viable and would work fine. It's a matter of what you want to do.
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