Hopefully you don't have to give up either! Personally, I think your friend is in the wrong because it's not her place to tell you who is and who isn't good enough for you cause that's your relationship. I completely understand the dilemma of it being a long time friend, though. If you truly like the guy and wish for it to continue, I would say go with that. You need to prioritize your own happiness and goals before you worry about anything else. You owe yourself that much. Hopefully your friend understands that and you guys can keep your friendship going.
Friendships come and go throughout life. If she is willing to stop talking to you because she thinks she knows whats best for your love life, then I say move on from that relationship because that doesn't sound healthy to me. I doubt it'll be easy, but once again, you have to worry about what you want and need before anybody else.
I hope this helps. :-)