So I can see both sides here. It's important to remember that there is NO wrong or right, how you feel is how you feel and how your friend feels is how they feel.
I'm in a situation right now where I feel like I'm not getting enough support from my best friend, and really my only friend. She is very focused on herself right now and I'm still struggling to make it through the day. I'm at a point now where if I want to keep being friends I have to say something or just let it go.
It sounds to me like you're being pretty honest with your friend. If you stick to the facts, which it sounds like your trying to do that's probably the best thing. If your intention is still trying to be friends, as an opinion you may want to rephrase some of your harsher statements ( as you've made it clear I won't be continuing my application etc. Asking him/her the question of "would you feel more comfortable if I withdraw my application?") Just some thoughts. I hope all goes well for you and you are able to stay friends!