My opinion - which may not be very popular, but:
If the kid is not in a booster seat, put the front seat all the way back and buckle them in. I sure as heck wouldn't be going out and spending $20-30K on a new vehicle just to cart the neighbors' kids around. If the neighbors don't like it, let them drive their own kid. This is a good example of how the media scares the public into taking extreme measures to avoid remote possibilities. Do you also make your kids wear gloves, elbow/knee pads and helmet when they go out to ride their bicycle?