All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.
We have already elaborated on the ruling of residing in non-Muslim countries in Fatwa 86405, so please refer to it.
In general, the conditions in the land of Islam are incomparable to the conditions in the non-Muslim land (i.e. there is a great difference). The example that you have mentioned about your friends is nothing more than a single incident; the corruption and the temptations of the desires in the non-Muslim countries on the other hand are prevalent and common, besides there being laws that provide absolute freedom. Even if you are spared, your children may not be so in the future, so you should be careful.
Therefore, if a Muslim does not have a necessity or need to travel to those countries, then it is better for him to live among his family and relatives where he can be dutiful to his parents, if they are alive, have good relations with his relatives, be in a country where he can hear the Athaan (call for the prayer) five times a day, and observe the laws of his religion without trouble.
Allaah Knows best.