Really, I prefer an in between. I do NOT like fake people and it's one thing I tend to get a small amount of hurt feelings over. I work very hard to be honest and it can be hard when it's a situation where they may not love what you have to say, but it's best. I had a friend who prided herself on being "100% honest and BLUNT" Thing was, she wasn't honest and blunt, but down right rude and hateful. She was a wonderful friend to me througout high school, but those little "truths" she loved telling served no other purpose besides to hurt. For years she wasn't like that toward me and later I too was a "friend" she treated that way. There's a difference (a huge one) in being honest and helpful and being a hateful douche-bag. Lol.
The honest friend I had would say things like "you're the biggest dumbass." About EVERYTHING! That gets old and it's belittling, not honest. She also liked saying things like "You don't need to wear that because people will think badly of you" or "you shouldn't wear this because people will think you're ugly." another common "truth" was "you look fat, your toes look fat, etc" Everything looked "fat." There are nicer ways to say things and really when someone DOESN'T look fat, why tell them they do?
This was constantly things she would say. If I have a camel-toe, be a nice friend and pull me aside and DO tell me. That's an honest, helpful friend.
Then I've had one or two friends that did care enough to be honest with me, but wouldn't ever be plain hateful or belittle me. After a few years of my very "honest" friend, I ditched her.
It can be very hard to be honest with people. Say someone has something about them that really drives you insane, but it's not something that would be nice to say to them. If it isn't hurting them or the friendship, things like that can be left alone. Small things. Like maybe someone spits when they talk or sways side to side when they talk. Those little quirks can be left silent. If one of my sisters or girlfriends ask if they have too much makeup, or if a pimple is showing or if their hair's greasy, I will be honest, but nicely. There IS ALWAYS a way of saying it nicely. I am a strong believer in that.