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Trunkin said:

I was under the impression that your friend would have to login to your account to access your games, and, once logged out, he'd lose all access. Is that not the case?

No.

Here's one example: I bought a game on my PS3 with my PSN Account, downloaded and installed it on my PS3.

Since my friend wanted to have the game as well, I logged into PSN with my own account on his PS3, redownloaded the game and it was installed on his PS3. As soon as this happened, I simply logged out. From now on, he can play the game on his PS3, with his own account, even though he even only has a local/offline account.