Hooyah, Integer,
Yep, according to the USNA Honor Concept, "Midshipmen are persons of honor. They do not lie, cheat, or steal." The honor system is student-run and, as Pete implied, is no joke. The best Academy midshipmen strive never to do two things: violate the Honor Concept, which rules your buddy out; and obsess over what the shipmates are doing, so just make sure you're where you want to be and let him sort himself out (or not).
As for what you should do, listen, everybody has an opinion as to the "best" commissioning source. As a former USNA mid, friend of ROTC grads, and current OCS applicant, I can tell you that they all have unique advantages and drawbacks, and they're all tough as hell to get into these days. (BTW, one big drawback to OCS/BDCP is that many warfare designations are bureacratically "closed" to those applicants more often, whereas graduating midshipmen always compete for open billets in surface, nuke sub/surface, pilot, nfo, or Marine!)
I'd say to try for as many different sources as you can, improving as much as you can all along, and letting everybody you know or meet hear how serious you are about getting in. Where you're from matters about 2% once you get into the fleet; the lessons you absorbed while you were there are infinitely more important.
show me your WAARRRR face!