OMG I am so so sorry

That is so horribly sad, and I am crying for you and your Andy

Is Toby afraid to go outside now? I wouldn't blame him one bit. Did the owner of the German sheppard get into any trouble? Leash laws are good, but if they're not enforced then they don't really help much
We have leash laws too, but my neighbor let his pit bull just run loose all the time, and one time it got my Starr. She did survive that (she died this past October of something else) and I reported them to the authorities and they no longer let their dog run loose.
Yes, I do believe that a new puppy will help you and your Toby. I wish you much happiness in the future. Your Andy would not want you to be sad forever, and Toby needs you