You have an excellent point about chart plotters often being inaccurate, Jim (and I assume that you refer to all GPS, as well as conventional "chart plotters". Often the occasional inaccuracy is due to inaccurate data used to create the charts... the same inaccurate data used to create the paper charts. This is very common in the South Pacific. Of course, sometimes the is due to limitations in the technology itself.
I would also agree with your friend's observation regarding over-reliance on chart plotters. Though, to be kind, I tend to think of it more as being "less than totally competent" with the technology than sheer stupidity. Many of those cruisers would never have ventured forth had it not been for the apparent simplicity of GPS. As long as they know where they are, what else could go wrong? We both know the answer to that... anything and everything. When it comes to electronic navigation, it's not a question of IF something will fail, but WHEN it will fail. That's why I prefer to carry multiple GPS systems and redundant methods to provide power to them.
Your reliance on paper charts is wise, as is carrying your sextant. I'm sure you keep up with it on a regular basis just to keep in practice and have at least one set of tables that are not stored in your laptop.
Thanks for sharing your observations.
Jack