Hey mooneyes
You mention several pros and cons. The trouble is that these things are pretty much a grey area.
Fundamentally:
For you: Is it just for fun, or a future career?
For him: Is it just for fun, or a future career?
If these answers don't match you will probably go your own ways eventually anyway. Only then you all resent each other.
For either fun or future career you have to say, how important is playing gigs? Obviously if it's just fun it comes down to how much you want to play gigs. If it's a career thing, it has to come down to how important playing gigs is to your overall strategy.
For the guitarist, if he wants a career, then he has to work out how he can play gigs, or work in the industry in a different way (songwriter/producer etc instead of performer). Anything else is not really being fair to himself or others.
Is there a way you can do gigs without the guitarist?
If you plan to get signed, put out CD etc, playing gigs is not really that important (I hear the traditionalists balk). Many artists have made it on the strength of their recordings. However, that mold isn't normally used for pop acts, unless they are primarily being marketed on their looks.
So, for me it comes down to your purpose and strategy. If the match, great, if they don't, there's problems.
Cheers
John