My parents are the 'friends' type. This, however, did never mean that they were not to put limits or that they wouldnt be the authority, so to speak. My sister and I learnt to respect them, as well as to trust them. They always taught us to earn things based on our own effort and to respect ourselves on top of everything.
They never, not even once, smacked us. And not because they daren't, just because they never needed it. Of course we were normal kids. Naughty, playful and we played pranks. But this is completely normal behaviour for a kid.
Parents nowadays seem to expect their kids to behave as adults, to be serious, to be competitive, to not disturb, and to be best at everything.
My sister and I were always straight A students, but it was a result of inner motivation. Our parents never demanded high marks. I guess it makes all the difference.
We were always stimulated (not forced) to give our 110% if we wanted to attain something and to always value and accept the results.
We have always been very busy kids. As soon as I started primary school, I started taking Martial Arts lessons, started attending a Language Academy, had Art lessons on saturdays and piano on Sundays. I don't complain, I met many people, made many friends, made contacts and lead me to be a highly sociable person.
With regard to the sociopath, rude, insecure kids out there, I believe there are many issues.
First of all, it can be a result of a lack of an emotional relationship with their parents. In consequence, they are given everything material in order to compensate for their parents' lack of attention and this leads the kids to get whatever they want, thus becoming whiny and capricious creatures.
Also, there's the parents wanting their kids to have a perfect, flawless, exemplary lives. Condemning failure, rejection and weakness.
There might as well be the fact that their parents are afraid of saying 'no'. Or that they actually DO say no, but are not able of taking the limitations further, given that they have never done it before and think that it is now too late.