It looks like VM will still be encrypting Channel 5 HD, even if it goes FTA on other platforms.
VM will have to make their PSB HD channels FTA before about 2020.
This is when the Government want the PSB SD variants closed to free up space on Freeview; so by default, the HD variants will have to be reclassified as PSB channels (which they aren't at the moment).
As such, from the date that the HD channels become PSB services, it would be unlawful for VM to encrypt them.
My friend can then finally upgrade to HD