Idioms, how do they work?


So, my friend and I were chatting the other day. I, being a new father, sent him a picture of my clothesline completely full of my daughter's diapers. Then this dialogue happened:



My friend: Woah, babies are really poop factories.
Me: No shit.



Now, at that point, the chat spiraled out to a discussion on how wrong I was on using no shit on poop factory. Words such as "complete opposite" and "idioms, idiot" were uttered. I pointed my friend at the definition at thefreedictionary.com definition:



no shit (rude)



  1. something is very surprising and hard to believe He's coming here tonight? No shit!

  2. the truth This is no shit - we're going to have the money for you tomorrow.



He wouldn't have it. So, I turn to ELU as final arbiter. Was my response above correct or not?


Edit: After accepting the answer below, I notice that this question could use a better title. If you have a better idea on what should this question be titled, please edit it and remove this paragraph.



Answer



Correct and appropriate.


Additionally No shit Sherlock ==> "You are stating the obvious"


which according to Wiktionary breaks down into



no shit (“an expression of amazement”) + Sherlock (“a fictional detective who makes ingenious deductions”)



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