Neighbors, Do you know yours?

In an increasingly technological world the words "neighbors" takes on a new meaning.  But, I'm talking about the people who actually live next to you and across the street.  We moved into our house about 6 years ago.  We know most of our neighbors on some basis.  We visit and talk to several of them.  I've even shared gardening tips (ok, she shared, I listened) with one.  I've asked to borrow a can opener from another.  I've also at times thought about borrowing the proverbial cup of sugar but chickened out.
So, my question is do you know your neighbors? Would you notice if they didn't sit on the porch, didn't mow their lawn, suddenly got a new car or even moved out.  Most people don't get daily newspapers so you wouldn't see the papers pile up at the end of the driveway. 
I'd like to think I am a good neighbor.  I've helped a neighbor stuck in her driveway, my husband has plowed many driveways and we let people post signs for garage sales on our corner lot.
But today, I was surprised at how unneighborly people can be.   I neighbor we've never met (supposedly 2 blocks away) knocked on our door a preceded to beret us for our loud barking dog who was out in 90 degree weather with no water.  She never introduced herself except to say she lived two blocks away.  I still don't know her name.  She then went on to threaten us with going to the city council about our dog being in 90 degree weather without water.   Let me state for the record our dog is an inside dog.  He does go outside.  He will even stay outside for periods of time.  He does bark.  He barks at people as they go by, when he gets his line stuck, and at squirrels etc.  He does NOT stay out all day.  The one time we left him out for a significant amount of time (cleaning the oven I think as it makes the house stink) he does get water outside.
But I digress, I wondered 1) why wouldn't my neighbors we know say something.  were they immune, scared, not bothered? and 2) What does the city council have to do with anything??????  My first thought was to inform her she was wrong we didn't neglect our dog, the second was to want to say, "Don't you mean the humane society?"   So anyways, besides ranting about this on my blog I decided to see exactly what my city council might have to do with alleged inhumane behavior to a dog. I checked out their webpage and saw all the normal projects they work on: budget allocations, repaving roads, zoning,taxes etc.  I even get that she could go to a open meeting and complain but um, still, isn't this an issue for the human society???
So, further digging was in order.  Perhaps I was still missing something?  So I checked other more general sites.  Unless they were to pass a city wide ordinance about dogs or something it still seems her threat was more likely her blowing hot air. 
So, now my dog's barking inside instead out outside and is nicely pampered in his air conditioned home with pleasantly of love and water....oh wait, I think he has to pee...maybe I can find her yard ;)

Ever had any situations like this with your neighbors?  If so, how did you handle it?