While dogs can be very resilient, a little extra 
effort on your part will go a long way.  
Specifically, don't let this incident traumatize 
her for life when it comes to other dogs.  As soon 
as she is well, put her in situations with other 
(larger) dogs, in a controlled environment of 
course.  And take it slow if she gets 
uncomfortable.  You don't want her living in fear 
of other canines (or worse, becoming so scared 
that she becomes aggressive in unfamiliar 
situations).

At least the neighbors are doing their best to be 
nice (and avoid a nice, fat lawsuit!).  ;-)

Good luck!

Oh, and here's a couple of Ryo-Ohki's to join 
yours.  These always make me smile.  May Rosie be 
this happy and goofy real soon.

JP