I will try and give a brief overview of Catholic teachings you have a problem with, contact me if you want me to go more in depth.
"why aren't gays allowed?"
Gays can practice the faith if they adhere to Catholic teachings. One of these gays may have a problem with is sexual ones, the Church teaches that sex should only be practiced inside the context of marriage and only be natural. Natural insomuch as it is done between a man and a woman using the correct parts, no contraception, no using of the wrong orifice, etc.
"Why can't women be priests?"
Why would they be? You must understand that each sex has a sacred duty, each of great importance. Each has a duty of parenthood, priests have spiritual parenthood and mothers have material parenthood. Jesus was a man and he chose 12 men to preach. It is clear that men have the duty of looking after the spiritual well being of God's people.
The Catholic Church is the only authentic Church! It was founded by Jesus Christ in 33AD, that is one of our core beliefs. All other "churches" aren't really churches at all, but man made imitations, rebellions from the authority that God set up here on Earth. This is not to say all other Christian communities are 100% wrong, but their faith is incomplete, altered, watered down. Catholic means universal, full, complete.
The Church was created to give humans salvation, this is not to say that all non catholics are damned automatically. The Church teaches the idea of Invincible Ignorance, that if someone is either not exposed to the Catholic Truth or exposed unfairly, then he is blameless for his lack of faith and is instead judged based on his accordance with natural law and the vigor in which he sought God.
We are saved by Grace through Faith. We are not saved through Faith alone or works alone, they work hand and hand.
It is your Christian duty to share the message of the Church with others, people need to be told the Truth. Your unwillingness to share says that you don't really believe it is necessary that others know the Truth. That said, there is a good way to do it and a bad way. Always be polite, but be sure they know that you don't approve of the 38000+ man made Christian communities.
Jehovah's Witnesses tend to be extremely hostile to other faiths, Catholicism especially. Perhaps not now, but eventually, they will start to call you a pagan and deceived by Satan. When they do, respond with charity and the truth about what you believe.
If your friends say they are Catholic yet don't attend Mass, they are not Catholic, they reject a core teaching and therefore excommunicate themselves. Evangelize them and teach them in the Holy Catholic Faith that they may repent and accept the Church in its entirety.
Catholicism is not an "easy religion", your friends just aren't following it.
Our Lord said that Baptism was for the forgiveness of original sin, if you don't agree, take it up with Him.
I am not saying your JW friend is condemned, neither is the Church, only God judges. Your prerequisites for being saved seem to be off. You are not saved because humans believe you are "good", you are saved based on your relationship with God, whether or not you want to spend an eternity with Him. If you do, you will in Heaven, if you don't, you won't.
The Catholic Bible is authentic, it bears every one of the caniocal books. Protestants have faulty theology and take out books at their leisure. They are famous for editing Bibles, don't let them fool you into thinking their Bibles are right.
Those traditions you speak of were man made traditions, the Catholic traditions I think you are referring to are quite different. They are Apostolic Traditions, passed down from the times of Jesus that have deep meaning.
Your Protestant friend is in denial that his faith was founded by men and imitates the authentic faith. No nice way to phrase that, really, he says that historical facts are "lies" because they conflict with his beliefs.
Lol at the Atheists here who didn't read your story but just said "be an Atheist"!