There's nothing wrong with prey drive as long as it's controlled. If a rabbit was in my yard I know my dogs would try to get it. If there's a bird, squirrel, strange cat....etc in the yard they would try to get it as well.
The great thing is that she dropped it when asked. Good dog!!
As for your hubby, let him know that there are thousands of people in the world that feed their dogs a raw food diet (including meat and bones) and that their dogs aren't running around with a lust for blood gleaming in their eyes, LOL

If he's still worried, tell him to stop hopping around the back yard, nibbling on grass, and he shouldn't have a problem