well talking about stuff like this eventually leads to some fanon, i actually am in progress of drawing a little comic covering most of what happened between the creation and the split.
i would disagree on a couple points that your friend came up with (for example the angel trio inherted their power from Lucemon so he must be defeated before their creation) but overall not to bad.
i guess i could make my synopsis on the events happening aswell as explaining the timeline i made a bit:
the digital world starts out as a Wasteland. (mentioned in Tamers)
ABC then ENIAC are made by humans, the first computers who start forming the digital world, the surrounding, forest ect.
the "Wild Bunch" creats the first primitive Digimon, Ancient Digimon species like SaberLeomon, Imperialdramon, Mammon ect. (as said in Tamers)
the dark master evolve aswell as the first Apocalymon, as a reaction the first Digidestined are called upon who defeat them, their partners turn into the sovereign.(as seen in Tri)
the Sovereign rule over the world, untill a war begins between Beasts and Humanoids (frontier tells us about the war and Tamers also had the sovereign in a somewhat similair position)
"God" creates the first security network manifesting in Lucemon and possible other angel Digimon.
Lucemon seals Huanglongmon(as mentioned in profiles) which ends the war (mentioned in Frontier)
Huanglongmon is sealed deep in the earth(mentioned in profile) that are is the dragon zone, where Bagramon later finds the weakend Huanglongmon and uses him as an ally. (Xros Wars)
Egyptian Cult is formed under Pharaohmon(as mentioned in Xros Wars)
Lucemon rules over the world, until he turned into a Dictator (mentioned in Frontier)
"the Fall" occurs in which the Seven Great demon lords first appear.
the SGDL nearly destroy the digital world (mentioned in Savers) example being Lilithmon killing of the Egyptian cult(mentioned in Xros Wars, and you can also see the ruins in Adventure)
the 10 ancient legendary warriors appear and go on a crusade(mentioned in profiles) aganist the SGDL.
the ancient 10 defeat all of them, Lucemon being sealed(mentioned in Frontier) Belphemon is putted into sleep for a 1000 years(profile) Lilithmon survives and joins Bagramon.
who later finds the sealed and weakend Lucemon and seduces him to work for her. (Xros Wars)
even though the ancient 10 being succefull only A.Greymon and A.Garurumon managed to survive the crusade(mentioned in profile)
which later seal Ornismon (as seen in the Frontier movie)
due to that large conflict and corruption "God" decides to split the Digmin World into Multiple Servers governed by Yggdrasil, with new security in form of the Angel Trio and the Royal Knights.
each server having different times and rules for reseaching purposes.
and from their goes the rest.
So two things:
1) What makes you think DW2 and DW3 take place in the same world/timeline as DW1?
2) The Wild Bunch as we saw them in Tamers didn't exist in the Adventure timeline as far as we know, so it's odd that they are placed right before Maki and Daigo's adventure in the Digital World on the same timeline.
1. should be be answered in this Thread i believe
http://withthewill.net/threads/15797-Is-there-a-start-point-of-the-Digimon-multiverse
if you have counter argument please explain, i´m open for changing it up
2. there is nothing to suggest that they didn´t exist in that timeline either, however you can also look at it from a different angle and say that the "real world" already existed as a multiverse, which together formed the first Digital World.