Our 2 young adult daughters (both grown and left home now) knew their their grandparents a bit. DH's died before our daughters were born, and mine died six months apart when our daughters were 3 and 4. Sorta had a little bit of life with them.
They see photos of them with them, but they don't really remember them very well. They have the occasional flashback of grandad taking them to the canal for a walk, and grandma showing them how to knit, and one of the Christmases we spent at their house, and a couple of other things...but not much.
They both say that they are not massively fussed, as most children they went to school with had dysfunctional families and blended families, and some didn't even know grandparents that well, (if at all,) and in some cases, the parent they stayed with moved to another town and they only saw the grandparents 3-6 times a year anyway.
I think the days of grannies being hands-on with the kiddies, taking them blackberry picking, feeding the ducks, to the park, and making cookies with them, and grandads taking them fishing and hiking and cycling etc are probably pretty much behind us. As I said, families are not that close anymore, many families are spilt, granny has a new boyfriend, and she often works, and grandad moved away and is rarely seen and works a lot himself too.
So OP, the cosy little grandparent/grandchild relationship is not as common as you think, and I doubt your kids will be massively affected by having no grandparents... Mine aren't.
Your friend as an arse btw. Bin her. Inconsiderate bitch. What a nasty thing to say to you.