What would make sense would be to have the ability to create chat rooms with groups of people. But this doesn't, especially if you have too many friends on at once.

Although the problem could easily be solved by having there be a command to chat with all of someone else's friends, with their name appearing in that chat log, like so:

Addisona(Addisona's friends): Hi everyone!
Bill(Addisona's friends): Hi
John(Addisona's friends): Hey man

and then the command would be something like /friendchat addisona. The reason I'm using text to indicate whose friend chat the chat is in instead of color is because there aren't enough colors.

But this would probably cause my text to fly super-duper fast. Faster than I can read. C'mon, I can only really pay attention to one group discussion at once. Rather, set up the ability to create chat rooms and send invites (to said room) to people.

-1 to friend chat, +1 to arbitrary chat channels.

I think WoW has it mostly right here, with their tabbed chat and selectable channels per tab; I wouldn't mind seeing that implemented.

It's completely like the guild chats. Groups. Friend chats are going to be a pain in the [censored]. There would be lots of friend chats. More details. How will the friend chat work? Will it be shown to your other friends?

You could just make a new guild, and gather all of your friends in so you can become a group of friends.