I have read this thread with interest, and I think this is an interesting dilemma. I think that there are a few aspects to be taken into consideration:
1) The scope of the demand
Much has been made of the fact that the friend asked for all 650 photos, and wasn't just content with the photos of the friend supplied by the OP. While I can see how this might come across as a huge demand, is the OP sure that the friend was not simply unaware of how many photos there were, and how big the files were. If I went on holiday with a friend, and I just had a smartphone and they had a DSLR, there might be instances where we took photos of the same thing, from the same vantage point (e.g. the Eiffel Tower, the Arc de Triomphe), but their photos came out much better than mine. I might just want copies of those items, rather than all of their catalogue of photos. But I might still phrase it as asking for - "all of your photos" rather than "a selection of photos that document our shared experience", especially as a response to just receiving photos in which I was the subject. If I was the one using my DSLR, I would probably say that I wanted to go through them and select the ones I wanted to share, as some of them were personal, and more of them were near-duplicates of other images with only minor differences.
2) The way in which the demand was made
Obviously, the OP feels that the demand was made in a rude way, but I do feel that if you think that there's nothing unusual about sharing photos after a vacation, then this might have just been a misunderstanding. If you thought that asking to share photos was a standard part of holidaying together, then I can see how you might ask in a way that came across as impolite.
3) The nature of holiday photographs
Clearly, for some people, artistic shots taken on vacation fall into a different category to standard holiday snaps. I don't particularly feel this way, but if I did, I'd explain that to my friend. However, I'm not convinced that this is what the OP feels, because in the first post they explain that they only uploaded photos with the friend in them. Unless the remainder were all "art", this seems to suggest that the OP was not making this distinction, but rather refusing to give their friend any photos, even snaps, that the friend was not an active part on. While this is obviously their prerogative, I don't think it is a particularly friendly thing to do.
Most of my close friends and I all have mid-range DSLR cameras, and most of us are reasonably good photographers. There have certainly been occasions on vacation (or even entire vacations) where someone has left their camera at home/in the hotel, as they didn't see the point in everyone bringing along expensive photographic equipment. It would never occur to us that someone would be unwilling to share any of their landscape or landmark shots.
4) The intent of use on the friend's part
Much has been mentioned on this thread about how this particular friend has plagiarised photographs shared by the OP. I can't actually find a reference to this, only to the fact that other people have done so. In either case, I think I would explain my motivation to my friend rather than just bean-dipping. If the concern is that the friend is going to put everything up on Facebook without accreditation, then I think it is better to explain that - say "I don't mind you getting copies of some of these, but could you not put them up on the internet?"
The OP makes a point of saying that they bean-dipped as a response to the request for further photos. There is a time and a place for bean-dipping, but I don't think that a reasonable request from a friend is the time to do it. It is not conducive to maintaining a close friendship. Far better, in my opinion, to explain your reasons, if the friendship is one you care about.