Unfortunately the rules are the rules. And the rules state that under no consideration are accounts to be shared between other people, with the one exception being for a SINGLE child in your direct care that you have guardian powers over.
Your friend broke the rules. They dont discriminate with the punishments. its the same for everyone.
Edited to add - the policy doesnt need to be changed. The thing is, in account sharing, the policy is very black and white because the punishment needs to be consistent across the board. How long youve played, how much money your poured into the game, how many accounts you have have zero impact on a rule like this. Weather your a 10 year veteran or a brand new player. If you account share, you suffer the same punishment. When you introduce multiple variables and instances then it does several things such as making the appeal process and account action process take more time and be less efficent. It also opens up to people to try and lawyer their way out of things and when you make exceptions to one you need to make it to all because again, regardless, no one is any more or less special and important than anyone else. Keeping a policy like this rigid means there is more consistency in the customer and company experience. Which is a good thing.