No...not normally. People, today, are too fond of criticizing others. It can be very upsetting, even between friends. The only exception, I think, would be if we'd both agreed to always mention anything like that.
Yes, I would tell a friend they had bad breath. Not always easy, but I have done it. You can always refer to what they might have eaten last night, and suggest they have a mint or something.
Personally I'd rather hear it from a friend than go around breathing on other people completely unaware of my very off-putting 'problem'.
If it was a one off i'd be inclined to offer a them chewing gum or a mint but if it was an on-going thing then i'd have to say something. I doubt I could hold my breath forever!
Yeah i agree with you there, friends should always talk to each other and have a good understanding of what is the best. Friends who help each other in the sorrow and happiness times are the real friends.