He sounds like he maybe a little bored and lonely, everyone needs friends!
There's no harm in "make believe" but it's obvious he's not happy!
Instead of "being proud he does not need friends to feel complete" (which he obviously does) you should be encouraging him to make friends by joining clubs or classes that he has some interests in.

He needs this kind of interaction for confidence, maybe join him up for karate its very cheap now a days (sometimes free) and is very good for childrens confidence, interaction skills and obviously self defence, and it wil give him something that he can be proud of (once he goes up in grades) maybe then that will be what you read next time on his Xanga diary!