Well, on a joking level I would likely have given you the same "messin" that your buddy did, just because it is the "funny" thing to do. I'm a kidder and joker and that sounds just like something I would do as well.
As to killing one or both coyotes, I admit I used to be an opportunist. In my youth I would have shot one and both if I could have just because they were dumb, hunting me, too close, or possibly had rabies.
I think most of us have either experienced or know someone who has experienced lag time on decisions to kill. For example, I have decided not to kill a doe while archery hunting many times when the opportunity was there. I have also decided that if they are "dumb enough" to just stand broadside for way too long, I had a change of heart and put meat in the freezer.
Also, there's something about really close encounters that keeps me from pulling the trigger. Just last evening on the final hunt of Kentucky with a crossbow, I was laying on the ground on the side of a shallow creek. Great ground cover and the crossbow was pointing down the hill at a frequently used trail. The wind was about 10mph from the trail to me. I wasn't laying down 5 minutes when 3 big Does come walking by at 4 yards. This was a very cool experience and I could have easily popped one (which is why I was there), but chose to enjoy the proximity instead.
So, there's my thoughts. As to close up coyotes, well, I can't say what I'd do in your situation. If I had a sense that they were aggressive, the thought of rabies might cross my mind and I'd shoot for sure if I was on the ground with them. If they were just close and didn't know I was there, I'd likely just watch, especially if I was hunting from a stand.
