These people sound as nuts as some I have met under other extremely annoying circumstances
. Luckily I have not had any problems with my doggies and we live in an apartment with neighbors all around.
I would take the extra step to contact the local enforcement department that covers dog owners laws and responsibilities and RIGHTS!!!. I would of course be very careful that you are always with your little peanut when out doors but I would in NO WAY let this nut case interfere with your taking this little guy or girl out doors. And if they get VIOLENT again I would definitely call the police and file a complaint. They have a problem that is not your problem....don't make it yours. Turn it over to those that can help.
Good luck....hope it works out and enjoy YOUR yard with your dog.
Tina