From what I've heard, it seems to me that the show has changed a lot in terms of its offensiveness. Since everything else in the show now is pretty innocent, I didn't mind the terminal illness jokes. Also, I think people are talking up that one song too much so that even before a person sees the show, they already know they're going to be offended by the song. Maybe give it another chance?
By the way, Lucy on the CD says that she got diagnosed with an eating disorder. She no longer says that. Instead, she says something like, "I went up a dress size."