If drill chucks were perfectly okay for milling, shops everywhere would be using them for milling. Mills wouldn't have collets, just a chuck... Your friend seems to think he knows better than than an entire industry, an industry that strives for speed in production. If his hypothesis was indeed the case, that would be that way its done.
I am no "armchair expert" on the matter, I have done milling with drill chucks, on drill presses no less. sure it can be done but its far from ideal.