Perhaps if we stopped calling this a "dropped third strike" and called it what it truly is: a "third strike not caught," we'd understand this better.
The problem your friend has is the term "dropped," because to drop something implies you first have to have touched it somehow. I make this analysis when I teach guys about the Intentional Drop vs. intentionally letting the ball fall to the ground.
If you look at this rule as third strike not caught and understand what in flight is, etc., you can explain to your buddy that he's nuts.