Thank you for at least confirming that I was corrrect in what was happening. I hope that Square Enix sees this and implements a change. I have it set in my online profile that no one can see my online status or anything about me.... this includes friends but friends on whos's list I wonder.

Square Enix if you are reading this please change this. If we unfriend someone it should automatically be taken of the other persons friends list as well, in game and online profile.