I think your handling the situation just fine
. I hope everything gets better for you. As for the incident with the child and the old lady well it happens and we learn. I know there are many times when we go to petsmart my kids want to pet every dog they see. Even though some people say it is okay I still dont let them. So it was in my opinion the parents fault for letting the child pet even after you said he may bite. So dont let anyone get you down we all one time or another have or will be in that situation. After all dogs have their bad days to lol.