Holy shit. If this guy is your friend, I'd hate to see who you'd consider an enemy. Yes, cut contact with him, and keep the option of it being for good on the table with yourself. I can tell you straight up that there's nothing you're going to be able to say that won't make this dude get pissed off and throw a tantrum. If he's a shithead about the time you were too sick to contact him, no excuse is going to be good enough for him. It's best to make whatever you say to him non-negotiable. "Friend, I need some space for a while. I'll contact you in a few [weeks, months, years] when I'm up to chatting again. See you!" Then block him absolutely everywhere. Don't wait for a response. I mean that seriously. The only way you're going to get the space you want is to forcibly make it, because I'd bet real money that he's going to try to browbeat you into changing your mind, and harass you while you won't. Make it as difficult as you can for him to do it at all. As for the friend you don't want to lose contact with, I think what you've considered saying to him is a good script, but I suggest adding a little more, "Hey, I'm taking some space from Jerk Friend but I don't want to lose contact with you - are you up to having a group chat with me and Non-Jerk Friend?" That makes it clear you're not looking to talk about Jerk Friend behind his back, but that you're actively seeking Other Friend's company.
Holy shit. I second what Mercury said, definitely cut contact with him. Beware though, I'm betting money he'll bitch cry and throw pity parties all around the place. That's usually how it goes with jerks, unfortunately.