It has to constantly charge the battery and uses the battery when plugged in - I mean, does your friend think that the battery automatically kicks into life if you disconnect the power?
The battery is constantly charged and powers the laptop while the PSU is plugged in - the only time the laptop will not use the battery is if you remove it, then it has to use the PSU.
Really, if you keep your laptop plugged in all the time, then take the battery out. Personally I never use my laptop battery, it's plugged in if I'm using it - but it's not exactly a lap-top, not unless your Geoff Capes, damn think has a 21'' screen, full keyboard, and weighs about 20kg.
Most laptops actually reduce performance while using the battery to preserve it - I'd rather have the PSU plugged in than be left with a strangled laptop.