Quick question, did I do the right thing? Relationship crap again..?

Nope. You set him striaght which you should have done a long time ago when you first realized he was falling for you and you were feeling nothing. Its god you met someone who fits you good and this other dude is just going to have no choice but to deal wit it. About the friends just ignore them and sooner or later they will feel dumb and move on from the situation as well.