is the morning shake not a waste since his body will just use that protein for energy during the workout?
No. One is in a state of fasting upon waking and as such the shake he has will be immediatly put to use as will the post workout shake.
Coneytt IMO you need to put out more effort when lifting and only do enough cardio to assist in fat loss/raised metabolism. All things being equal a hard workout will cause a greater metabolic stimulus than cardio ever could.