Widespread paedophilia in the Catholic Church, to the very highest level, would appear to offer a counter argument to that. Being religious does not make you any more or less moral, because we have the God given gift of free will. (But I agree, that is a reason my friend has given, its more of a moral framework for life, that can be followed even if you don't believe in the virgin birth, etc)
How ironic that it is this God given gift that I use to choose not to accept the concept of there being a creator to give me this gift in the first place.
Also, God will apparently punish me if I use my free will to choose not to believe in him\her\it. Hardly seems fair.