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For example, at work a host-based firewall would severely hamper various tools needed for day-to-day functioning; on the other hand, the network at my home has several computers, most of which are not mine, and therefore I don't entirely trust them to be secured and patched, thus I run a host-based firewall even though I also have a router with a firewall running.
Thats one thing that I'm still wondering about. Would you really need a host/personal firewall? In my case I'm kind of paranoid and I like to know what dials out, but for most of your non-technical or even technical users, do you really need a firewall on a host system?
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how do I know that my friend's unpatched/unfirewalled machine won't get infected if something manages to get past the router's firewall, and thus establish itself within the "trusted" portion of the network?
Wouldnt in this case, that be an antivirus issue? What is there to worry about in that part of the network? Even if someone in that network were to do a port scan/etc., so what? What is there to crack in that case?