@Karl1128 I am afraid that @Sarah977 is right. Many CS reps have no idea what they are talking about and barely know Airbnb policy. I have lost count of the times I have had to explain it to them and quote policy back to them.
As for this agent's suggestion to rent out to family and friends to get more reviews, did he/she mention to you that that's a clear violation of the Airbnb review policy? The algorithm can, and sometimes does, spot bookings with ridiculously low prices and suspend the listings. Airbnb policy is to suspend first and investigate later.
So, even if it is true that this is a way to boost your placement in the search results, the agent has told you to violate Airbnb policy, which could get you suspended or even banned, and your future, legitimate bookings cancelled.
As for what impact having great reviews has on the search ranking, that is questionable anyway. A while back, a bunch of hosts did an experiment which they posted on the forum. They were from different countries, but they decided they would all do a search for an apartment in New York, using the exact same criteria.
Although there was some slight variation in the results, what was consistent was that most of the listings that came out on top had low ratings, some so low that it's surprising they hadn't been banned. Having a tonne of great reviews seemed not to have an impact and Superhost status most definitely did not.
I have plenty of 5* reviews for my listings, but my bookings have never been slower than this year because of the Summer Release and its dodgy algorithm. I had way more bookings when I just had a handful of reviews (and I am talking about after the new listing boost had ended). Also, my listing which currently has only 29 reviews constantly shows higher and gets booked before the one with 119 reviews. My listing with 140 reviews consistently shows lower in the results than the other two.