I agree that you should minimize contact with this family.
1. Their dog killed 17 of your pets.
2. Your DD tried to defend the pets and distract the dog. She was unsuccessful.
3. Your husband was forced to kill the dog to prevent further deaths of your pets and possible injury to your child.
4. The neighbors are harassing you now. This is illegal.
Yes, it's harassment what they are doing.
A few years ago my cat was attacked by a neighbor's dog in my own back yard. I heard it happen but didn't realize at the time what it was. My cat (the one in my avatar) was severely injured and required expensive surgery. I got the city to declare her dog "dangerous". I sued the neighbor and won. She declared bankruptcy and I didn't get a penny.
... but...
I looked up the tax records for her address. BINGO: she was a renter. I wrote a letter to her landlord and alerted her to the situation of the dangerous dog residing on her property. Turns out that this neighbor was not allowed to have dogs at all, and was forced to get rid of them.
About 6 months later I was out front getting my newspaper one morning. The young daughter - maybe 13 or so - was walking to school and started yelling at me: "You're the one who killed our dog. It's your fault. I HATE YOU."
(sound familiar?)
I started to respond. Then I remembered: I'm the grown-up and it's my responsibility as such to not talk to other people's children about situations they don't understand. Would I want someone talking to my child about a situation between adults? (no way)
Still, it was everything I could do to keep my trap shut and not light into her.
The neighbors caused me no further grief. They moved out last summer, thank goodness, and we no longer see the adult nor either of her teenage kids.
Hold your head high and take the high road. It may be difficult in the face of this harassment but if you document theie actions in words and images, you will eventually have enough proof to get law enforcement on your side.
In the meantime, you may want to do some investigating into local laws & municipal codes about livestock, harassment, and dangerous animals.