Sounds like a wise decision. The original tersness wasn't a bad flag, but now that there's context, it makes sense. I'll bet the office manager is frustrated by the president's management style and didn't want to get into it.
Dollars to donuts the president used (or would use on the next hiree) the following phrase: "You make me look good and I'll make you look good."
I'm glad the OP's friend didn't take the job; it sounds like a hinky workplace. But, re the bolded----what am I missing? I thought employees are supposed to do stuff that makes their bosses "look good." I'm not being facetious; my work history is so non-corporate, I really think I'm not getting something here. Help? 
I've never, ever, heard that statement delivered by someone who wasn't a bad boss. It's been a prelude to stealing credit and throwing underlings under the bus. Given the egotism in the interview, I'd take this as another sign that it's a very bad boss.
For me, the best relationship is where the boss lets the employee shine and doesn't worry about his/her own image. If you hire good people and give them the tools to do the job, then you will look good.
I agree. Usually that statement means You make me look great, and Ill scratch your back once in a while. But Ill also throw it in your face about how I did you a favor.
Also, while the boss in my post may or may not have had unsavory motives re: travel, Id bet he would use all the Hawaii stuff as leverage. Pffft, who needs THAT?
Ooooh, by the way . . .forgot this part. Friend said during the interview he mentioned something about how he needs someone to do things like getting hold of his tailor and his personal chef.

Strange things to mention during an interview obviously meant to impress. I asked what he looked like and she said late 40s, short, and a chubby body.

I also asked what the snippy office manager looked like. She said "The housekeeper Alice from the Brady Bunch - but minus the smile." Heh. Although I still think OM was out of line, my guess is that she gets tired of boss's nonsense (and the staff turnover) but he's probably paying her big bucks so she won't quit.