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I'd get a laugh out of it... what are you trying to accomplish here? Whatever it is, I doubt it is that.
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Just withdraw your application - tell them that you're accepting another offer.
This email makes you and your friend look bad.
Why would you ever considering sending this. Just take the other offer.
Interviewing out of curiosity is not professional ever. Taking up your friend's spot and wasting everyone's time again is pointless. Now to admit to both those things makes no sense.
Take the other offer, and email them back saying your sorry for wasting everyone's time and stop doing so asap.
DO NOT mention your friends name. You will both get dinged.
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