Obviously ignore his chatter after the hand, it can all be summed up in a few words: He's got some maturing to do.

1. What do you think of the play? HOW bad was it? It was bad. But how bad?
If you put him on a diamond draw, you should be raising him every street. Don't let the foo get some cards for free. I don't mind the preflop call because it sounds like the type of player who you need a good hand postflop to be playing against.

2. Do you see my point on why I played the hand that way?
Nope. You're read was either he had a monster or was on a draw. RAISE.
3. Do you see my point at why I play the 2 games different?
Yes. I always play looser the lower the stakes.