Yes, it is completely fine, as long as they are fully aware of the type of life they will have if they keep up their current habits. For example, if a regular 9 to 5 is what you want, good for you. Just understand what kind of life it will give you. This may sound obvious, but most people don't get it - they work 9 to 5 and complain when they lose their jobs or don't get the promotions they want or realize that the work they do is actually meaningless. What I'm trying to say is that, in the grand scheme of life, you reap what you sow.
9 to 5, cruising along in a steady-state of knowledge doesn't necessarily imply failure. It depends on that knowledge, of course.
Frankly, with the new-graduate economy like it is, a steady, well-paying 9 to 5 is a luxury, but you make it sound quite bleak.
This is not necessarily even a lack of ambition -- we're all allowed to aspire to whatever lifestyle we think will suit us best.
You can't say one way is better without describing what better looks like -- and when we have different descriptions of that, the best thing to do is just tink your drinks together and keep your "How can he live like that?!" to yourself.