I was just popping in to see what people are talking about for organizing the next school year, but I couldn't let it go and not answer this.
Scouts is about character development!
I would switch troops, definitely, because you would want your son to switch jobs if people at work were behaving like this. But I would write a letter to the Council dealing with these concerns, because you are right, this will just happen to other people. When the leaders of these boys signed off in their books that they are living the Scout Oath, and the Scout Law, they were lying! The council that you belong to needs to be aware that if these boys have been making rank while participating in this behavior, the leadership has been deceptive, and this is probably carrying over into other areas.
And, just to let you know, another scout played a nasty trick on my 12yo son, and he was watched like a hawk by all leaders for a long time. My son belongs to a troop much like your own in size. In my son's case the other boy was elected Troop Leader, and the adults in charge have not cut him any slack to continue any bad behavior. He is a homeschooled young man with very nice parents, but he can be a real bad influence and so he has been closely watched.