Thank you for your opinion I have something to say to you regarding the neighbour kids. There is nothing wrong to tell those children how to handle your dog, if the puppy was your skinbaby you definitely would not let them to play with her like with a doll. As I have kids of my own I feel more free to talk to other people's children and tell them if I feel they are not treating my kids right. And sometimes children have much more respect from strange person than from their parents or folks (I remember my partner's granchildren when they came to visit us and could not leave our kitten alone.. they just did not bother what their father told them unless I said my word in a firm and explaining voice).
Children are usually very openminded and it's more their parents or in your case grandparents that may make you feel akward about telling the kids. You can either take a breath and try to explain to the children or talk to the grandparents and ask them to explain to the kids for you (which may be more difficult

) In my opinion even if your baby is very fragile and you are terribly scared that something may happen to her it is good for her to know that there are these little things that look like you but have high voices and smelly hands that feel a bit different on the fur
Keep well and thanks again for your message