Sure, I think many of us can claim the same but the difference is you probably weren't the CEO or the boss like in OPs story. I think that changes things drastically. A boss can delude themselves into thinking employees are their friends, some even go so far as to claim employees as family. I generally stay away from small companies that pull this shit. This blurring of lines complicates every aspect of your job and leads to some very uncomfortable situations like asking for a raise, negotiating, etc...

Yeah... companies that harp on the "family" sentiment are either being disingenuous or naive given that they can get rid of you at the flip of a coin without remorse.