.308, in a solid bolt action like a Ruger M77. dont start him out with a semi-auto especially if he will be using this mostly for range use, as its very rare that a semi can come close to bolt accuracy. not saying they cant, but hell either have to be very lucky or spend significantly more money.
.308 ammo is not much more expensive than .223. it will give you more options at the range - you could shoot 1000 yard with .308, but .223's range is much more limited.
if he decides to hunt he could find ammo suitable for pretty much anything from varmints to moose or black bear. it is not ideal for either of these but its perfectly acceptable. if he doesnt handload he would not get the benefit of added versatility from the .30-06 so he should just stick with the .308 and more widely available/cheaper ammo.
recoil is also perfectly acceptable for most people. im a huge fan of both the .223 and .308 but if i had to own only one rifle it would definitely be a .308. there is nothing the .223 can do that a .308 cant (aside from hunting in areas with a caliber restriction), but much that the .308 can do that a .223 cant.