Update on my personal tragedy.....

I am very please so far with my daughters progress. She is healing well, but its clear that there is going to be some scarring...that bothers me deeply but Im sure with time it will look better. She won a bicycle at school and was very happy about that, but cant use it because she cant have any exposure to sunlight per doctors orders. She and her sister made the honor roll AGAIN, I am very very proud of my girls.

NOW....

I need to know what your thoughts are on this.

What is the protocol, or the moral or ethical way to handle the fact that the dog is still living with these people one door down?
We are very good friends, our kids love to play together, and the dog is outside most of the time. However. The day of the incident, the father made it clear that the dog was to be put down because he could no longer trust him, since then he said he was going to adopt him out to a farm, none of which has happend.

They are great people, and have been there both for moral support and financially they have footed the entire bill the entire way.
I dont know if I posted it here or not, but I was also bit by a dog last year, since I am terrified of strange dogs and do not walk outside in the neighborhood, I tense up when I hear barking. Imagine how I feel now! The dog that bit me is still living at his home also and still seems to be pretty vicious...Needless to say, that even though I am a dog owner, and just plain love animals ( those of you who know me know that ) I want this dog to be put down in a bad way. I hate to even have those words come out of my mouth, but I just cant help it. I dont think adopting him out is a good idea, and I dont think having him around the owners and their children is good.....HELP.....What do you think.....I am slowly drifting from the neighbors and they are noticing and have asked....I want to tell them how I feel but just dont know how!