I admit that I would not like to see a loose GSD running around in my neighborhood either. Yours may be nice, but they are a very protective breed, and often tend to be aggressive, if in the wrong hands, which, unfortunately is most often the case.

As much as I love dogs, and GSD's, I would be afraid of a GSD that I did not know very well, running around my neighborhood. Why risk it and assume that such a large dog is friendly? I don't blame your neighbor for playing it safe and stearing clear of your dog.

Just my honest opinion.