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I agree with you about wacking the dog with a newspaper.
Years ago, the neighbors had trained their dog leave their side door and poop on our lawn. We did not have a dog because of allergies and my Dad was ticked to have to clean the yard before mowing the lawn. Talking to the neighbors did nothing.
My Dad removed the screen in my bedroom with a clear view of the front yard for a long holiday weekend. Next to him sat, a large box of industrial strength rubber bands. My Dad, armed with a couple 12 packs and a tv set, laid in wait for this dog starting at 6:00am Saturday. By the time the weekend was over the dog had been snapped in the butt so many times that I think he had a bad case of back up, from all muscles tightening with surprise and pain. He never came to our yard for his business again and they gave the dog away not long after they found they had to clean up after him.
When there is a will, there is a way. Without killing the dog...geez.

What's is so truly unfortunate about your father's experience is that your neighbors seem very much like the typical dog-owner.

Thankfully we have plenty of folks around here to take care of that problem before it gets out of hand.