Would you stay friends with this parent?

No, I would stop being friends and doing play dates. She should be redirecting his behavior, making him apologize, and putting his butt in time out if he doesn't. I was on the playground today and of coarse there was a 4 year old bully picking on my son. the parent barely said anything but nothing was too bad, just taking a ball away from him and not lettin him enter a play thing. It's healthy in a way to let things play out and let them handle things on their own but if its in my face in my home. Not going to happen.

Since she is not correcting his behavior every time, I would stop inviting them over for sure.

I agree.  This boy will actually grab toys out of my son's hand in MY house and has pinched my 1 year old in my house.  My son is very easy going and lets things slide, but I can't take it.  And this mom is the first to stand up to other people if someone does something to her son.  I feel bad ending the friendship, but she is disrespecting me and my son by letting these things slide. 

I would stop being friends with her

stop inviting them stop with the playdates

No I wouldn't want to be around that myself, or have my child either.      Might be a phase and you can try again later...

Have you spoken with her about it?

Quoting starinmysky:

I agree.  This boy will actually grab toys out of my son's hand in MY house and has pinched my 1 year old in my house.  My son is very easy going and lets things slide, but I can't take it.  And this mom is the first to stand up to other people if someone does something to her son.  I feel bad ending the friendship, but she is disrespecting me and my son by letting these things slide. 

Thanks everyone for the advice.  I was worried that maybe I was being too sensitive.  I have never encountered such a mean child before.  He's only 4 and he insults my son so much.  It's not even typical kid stuff.  He puts my son down.  My son doesn't react either, he basically ignores it.  They play nice sometimes, but there's always a few intstances where he's mean.  I never had this before with other playdates. 

:-(

He is learning this behavior somewhere, it sounds like.
I'd probably want to stay away.

GL!

If you continue to be friends, I'd suggest that you make subtle corrections to him when he's at your house.  YMy thought is My house, my rules.  I made my dh cousin's wife mad at my ds 1st birthday, but I wasn't going to have kids disrespecting me and my things.  Mom got the hint real fast and started doing some corrections too.