Rob - you're response was surely the best. Without cutting the ground from under him you managed to make a suggestion that can only help. I'm sure he'll have taken that as encouragement, and will have appreciated the fact that you thought he was worth helping out with some advice.
It would be cruel to over-compliment, we all need honest feedback in order to improve.
Its really mean of that other guy to gush about someone's performance and then laugh at them for taking the compliments seriously. What a git!! Does he have a go himself?
Families can be swines for criticising can't they? Sometimes I need that spur though, then I work hard to do better - out of pure spite...

Kris