If your neighbor opened up a permanent hot dog stand or a snow-cone business next door in his front yard - you wouldn't have a problem?
I totally get the occasional lemonade stand - but I'm not going to get my outrage going by this story. Sorry to disappoint.
"a permanent hot dog stand or a snow-cone business next door in his front yard" - again with the straw man arguments...[shakes head]. Again, please show us in this story where the child was selling hot dogs or snow cones, or where this was a permanent, year-round business.
I feel sorry for the kids in your neighborhood.