Not trying to be stupid here, but I really can't see the big deal here:
I buy an album. Ok. A friend of mine asks me to lend the CD to him so he can import it to his iTunes library just for him to listen to it. It's something I bought, and as long as I don't "make illegal copies of the disc" (which is what is written on the CD) I can do basically whatever I want with it. Even eat it.
So, importing to iTunes isn't making a copy of the disc, per se, and if neither my friend or I make any money from it, we are not profiting from someone else's work. So my point is, where is the crime?
You're a terrible person and you should have told your friend to buy his own damn cd.
Let's see how long that friendship lasts! Honestly, if a friend told me to go get my own instead of letting me copy his, i would never speak to this person again.