In all circuit situations you must be aware of what's going on, OK, so it's easier at some airfields than others, I grant you that!
I suggest that everyone in the circuit has a responsibility for safety as well as the ATC.
Aerosexual I would humbly suggest that if your mate was visual with the 2 aircraft ahead of him and yet he was told he was No.2, then he should have said something to ATC immediately. Surely that's what good airmanship is all about, and would contribute to good Circuit Resourse Management.