They're going for about that or a little less on eBay, so it's not a bad deal. You could get it down 20-25 more bucks, but it's your buddy so throw him a bone. Or you could ask him to throw in some accesories. I just bought a used one about a week ago for $145. (*He was asking $160 for it.)Although it has a little cosmetic wear, it works great. Plus he threw in a car charger and silicone case, so I felt it was a good deal. Good luck!!
P.S. I doubt it will "officially" get ICS, but we have some amazing devs still producing for this device, so you never know what they will do or come up with.