I have to agree with this. It's way too long for the average person and also includes way too much "fluff" (why you moved to that neighborhood, you checked other spots to locate dish, and the entire 2nd to last paragraph). I'd start with paragraph 5 and include 6-7 only. That is, IF you even send it now.If I was the fuming neighbour, I wouldnt read it as its too long. Try to be more concise....
I also agree with Claude -- do NOTHING at this point. Call his/her bluff. You have NOTHING to lose.