Yes it was discontinued. The last model year was 2006. However, there are apparently many unsold brand new GTO's, enough to warrant an entry in Pontiac's current lineup as listed on their website. There are 25 unsold GTO's in LA county.

Maybe you should tell your friend, don't buy a Scion, don't buy a Lancer, go buy a 400 HP LS2 Pontiac GTO. It's probably a better throwaway car than a Lancer.