We have friends whose son is so out of control we've started making excuses to not hang out with them?

We know a couple who has a 7-year old son who acts like a 3 or 4 year old. He throws fits when he doesn't get what he wants, screams and cries, acts like the world is ending. And most of the time it is because his mom didn't toast his bread or forgot to put cheese on his sandwich. She makes excuses all the time that he's "sensitive and has strong emotions" but we have recently found out that not only does he go to the principals office regulalry at school, but that he also has a reputation in the neighborhood for his fits. Most recently we have started making excuses not to hang out with them because of how inappropriate his fits are and how terribly the parents handle them (coddling and giving in). We also notice our son starts to act out more after we've spent some time with them, so we don't like that influce either. We really like them, but don't like their son. Is there anything we can do? I feel like I can't really say anything even though I think they have basically let him become the king of the household and will be a disaster in a few years. I don't want to end the friendship, but I also don't like being around them when he's such a brat. Any suggestions?