When you take your friends flying presumably they either cost share as per the guidlines or you are logging all the PIC and are paying for the lot. Not a problem.
ie
(bb) the proportion which such contribution bears to the total direct costs of the flight shall not exceed the proportion which the number of persons carried on the flight (excluding the pilot) bears to the number of persons carried on the flight (including the pilot);
But you do have a point that you do get PPL FI's.
Still think its against the spirit of the legislation and they would take a dim view of it.
MJ