And, you state The dog in this situation likley isn't even dangerous. I really think you may be a little dillusional.
I really don't know because I haven't saw the dog - so I guess I really can't speak on it. However, I have been around similar dogs that appear to be very mean (barking and griwling visciously), and reoeatedly try and escape, but then when they are out and dealt with properly they are fine. That is not to say that they do not have the capability pf being dangerous. I am also not saying to ignore anything. Problem dogs should be dealt with, but to be a problem dog you have to cause a problem. Here, the dog did cause a problem - and should have been dealt with. If the dog would have gotten out of the neighbors yard another good way to deal with it would be to catch it and then surrender it to the humane society or dog warden as a stray. It is likely that the owner didn't have a license to own the dog and would either not get it back or have to pay to get it back. This happening enough time will put the owner in his place. Banning dogs is not the answer is all that I am saying.