That got me to thinking though. While I'm attracted to the sentiment of freedom above all else, what I think is missing in his equation is that communities tend to be sort of self-reinforcing. It would be very difficult, if it were accepted by others to not hire black people, to be the first one to do so. Now, laws against that kind of discrimination don't change the way people feel, nor make their racist sentiments go away overnight. However, they do drive those thoughts underground, and break the cycle of "we've always done it that way" by making it no longer acceptable. And with time, that improves the climate and makes it easier for attitudes to change.
At least that's one thought that came to mind. I really admire Friedman's purity of thought, but think that perhaps it's a bit naive. It would certainly be an interesting subject to discuss in person with a person of that libertarian mindset.