While it is generally true that if speakers are placed too close to the front wall, imaging becomes flatter and the sense of sound enveloping the listener and filling up a large space is compromised, that hardly means that it is pointless to try to work with a particular room use demand/arrangement.
First, all speakers can be made to sound quite dramatically different by making very small changes in placement. You can make a huge change in sound just by moving the speakers a tiny amount and by making corresponding changes in the toe-in, vertical rake angle, etc. Finding the best arrangement can be a haphazard trial and error process, or, you can use more systematic methods. Do an internet search for the "Sumiko" method or the "Wilson" method. With some experimentation, you will find that there are MANY spots where your Aerials will work well that won't require a radical do-over of your system or your room.
If you are willing to change speakers, you can also look at speakers that are meant to work in close proximity to room boundaries and with other difficult placement requirements. The Audionote and Gradient brand, for example, design speakers for such applications.
Finally, I have heard all sorts of room treatments and dedicated listening rooms with extreme acoustic makeovers. At best, I would say, proper acoustic treatment is a crap shoot. It is still hard to predict the result and "more" is often "less" desirable. Some of the weirdest systems I've heard were in ultra expensive specially built and treated rooms. One can easily go too far, based on some philosophical or scientific system/principle. I would say take room treatment slow and easy. Start with things that won't make your room look ugly and uninviting and won't compromise the functionality of the room. For example, a few small tapestries/wall hangings can be enough to tame high frequency slap echos and often work better than putting too much treatment on the walls. A carpet on the floor in front of the speakers often works well too. If possible, avoid a big coffee table between the speakers and your listening position.
Good luck on your efforts. While your friend is somewhat correct in suggesting that proper speaker placement and room treatment are a priority, I would not agree that it is pointless to try to work with the rough demands of a particular setup and room and to also upgrade your other components.
