Answering the question first - No, for many of the reasons listed: lack of insurance, major issues (impoundment, arrest) if pulled over, and thus reasons to take unsafe actions if there is an attempt to pull over.
Not passing judgement on the other person, or on you Dinsdale, but if this were one of my best friends, and they were driving frequently (which seems to be the case), I would be prodding them to take the steps to get their license back.
It could be they were required to take a class after the non-licensed period, or they’re afraid of the insurance premiums, but neither of those should be insurmountable.
(while most carriers only go back 3/5 years, not having had a valid license for a minimum of 12 months can result in much higher premiums depending on the carrier, equivalent to having a Careless Driving Ticket for some carriers).
Still, I wouldn’t end the friendship over this, but I would not, and strongly encourage my spouse not to ride as a passenger in the vehicle until the situation is resolved. You can go at it jokingly, seriously, or however it is most effective for your friend, but be the friend and suggest they stop putting themselves and others at risk.
Because if your friend gets in even a semi-minor fenderbender, something even just 50/50 fault, and needs to pay for all her repairs and say $10k in damages to the other person, can they easily afford it without blinking? If not, perhaps it’s time for them to reconsider.
And we’re leaving out the slightly more out there scenario where they get in an accident with you as a passenger, and you accidently admit that you knew they were driving in violation of the law and some cop or lawyer tries to make you liable in some way.
It was from a DUI incident (and it’s an ambulance chaser website), but it’s not totally out there -