Interactions with neighbors, wherever they may be, can always be dicey. However, in my experience, it is the 'assumptions' of what we believe their 'motives' to be which are usually the issue. And it goes both ways. We recently moved to the country, after living in the city/suburbs for 30yrs, (I grew up 20m from no where) and we've made it an absolute priority to get to know our neighbors. We've talked about things, I've contacted them with information, what I'm doing, and on what I'd like to do with the fences, roads, etc. Everyone has been very appreciative of the information and as funny as it seems, we, having been there only 2 years. have brought neighbors who've lived within 2 miles of each other their whole lives, closer together. Given that we have worked to know and interact with everyone, those neighbors now interact more often.
I guess what I am saying is, contact your neighbors and talk with them. If you 'keep the camera', but nothing is said, you will harbor hard feelings, as will your neighbor, and that isn't the type of neighbor I'd like in any regard. Openness and honesty will garner you much more, than waiting for him to meekly come beg forgiveness. Whether he was wrong or not, address it and get him on your side. He might be the only guy who sees someone snooping around you place, and rather than call the cops, he might remember the camera, and continue watching the news. 'Fault' doesn't matter... when what you both might really need is a good neighbor.
As far as the dog... again, I recommend hitting it head on. Your neighbors don't want to lose a dog. You don't want one to die because he chased you. Your wife won't (potentially) ride again because of the dog. ... To me, it seems like addressing the issue of the dog chasing you would be in everyone's best interests.
I don't understand so many people's thoughts of 'I'm right and you're wrong'. I mean... I understand it... but I don't know why anyone would hamstring the rest of their lives by maintaining that attitude.
