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Cyan comments on How Not to be Stupid: Know What You Want, What You Really Really Want - Less Wrong
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I don't want this to devolve into an argument about precisely how to talk about preferences, but I think this is a more substantive assumption that you are regarding it. If I prefer going to the Italian restaurant to going to the Mexican restaurant, I might still choose the Mexican restaurant over the Italian restaurant, because of the preferences of others.
It seems like you are also glossing over the importance of the possible difference between what I prefer when choosing to what I would have preferred had I chosen differently.
Your example only shows that your preference ordering is:
"go to an Italian restaurant with friends" > "go to a Mexican restaurant with friends" > "ditch my friends and go to an Italian restaurant alone"
I agree, however, the definition of preferring A to B that he gave was choosing A over B (and if we don't specify that A and B must be total world-states, then it would turn out that I prefer Mexican to Italian because I chose Mexican over Italian). Psy-Kosh's comment above explains why that isn't what he meant.