Yes, he is a valued member. Nobody got "mad" at him. We just pointed out that the PM night was for PMs. There was no disharmony beyond a "dude, that's not the purpose of it." In today's world, people who haven't put in the time and effort think they are entitled to the same benefits as those who have. They aren't. There should be something set aside for those who have gone above and beyond.
I think it's important to hold a PM's night because it is a special recognition to those who have gone above and beyond by devoting a year of their life to the lodge. If you've done the job - and done it properly - countless hours and money from your own pocket are given in service to the lodge. I guess if you belong to a tiny lodge with 20-25 members, everyone is eventually a PM. If you belong to a lodge with several hundred members, there is generally less 10% who will be living PMs at a given time. We have photos of (nearly all) our PMs dating back to 1859 hanging in the lodge for a reason. It's an honor to be elected WM, and if one night a year can be set aside to recognize that, it's important. It's a simple "Thank you" for the effort you put in.