Is Honesty really the right Policy?

I feel like there is this new wave of absurdly honest people that ive been encountering. I have a very good close friend who has always been bluntly honest, lately though its transformed into just plain meanness. I dont want to hear the hard truth constantly, sugar-coating is our friend and anyone that denies that is retarded. Im a fan of honest answers, honest opinions, etc. but there is this threshold that is hit that you just dont cross because it becomes hurtful. Why do people feel like they have the right to discount their cruelty in the name of honesty? or even worse become so used to it that they no longer recognize the hurt it causes? Would i rather have my friend lie to me about being a shit to someone so i feel better? or tell me how it is? Both have their pros and cons. The only answer i can come up with is that it depends on the what, how, when, where, and who it deals with. Situational specific honesty, thats what i want.