MacGruber - Does that last quote refer to the friction angle between fill and wall, rather than internal friction within the soil? The original Rankine model assumed (in effect) that there is no friction on the wall, so the major and minor effective stresses are vertical and horizontal. That's not exactly how WJM Rankine set up his formulation (as I recall), but the effect is the same.
(You can derive Rankine yourself very easily, beginning with a Mohr circle touching the MC envelope, as if the soil is in a state of failure. Assume sigma-1 is vertical and sigma-3 is horizontal, and solve for sigma-3 as a fn. of sigma-1 and phi'. There is of course no shear stress on the planes of principal stress. Reverse -1 and -3 for passive pressure. If you have more patience than I do, you can derive Coulomb for any beta, negative or positive, by a sliding block.)