I'm new to LH and only dip my toe in occasionally; like others, I was never around when the chat function was up and running, so I've never missed it. To be honest, there's something reassuring that everything is out in the open as it is (and yet only within the confines of the LH forum) - it feels like a safe space - and there's no opportunity for any one-to-one awkward situations to arise.
I'd imagine that the concept of "Friends" within LH is to try and nurture a closer-knit community. With so many registered users, it's a way of "bookmarking" particular people you feel a certain affinity to, have similar interests as, enjoy their posts, etc - that's not the same as connecting through people via chat.
Having said that, I don't have any friends (buwahahaha!), so I'm not sure if the Friends function lets you track certain people's posts etc.
The hardest thing surely is to be an ex - to your best friend......... I know that I am finding it tricky at best, and heartbreaking at worst.
I'd much rather not be the ex, and be back to being the best of friends.........