Tell your neighbor to F off.

I would.

One of the best words of advice someone ever gave me is "We teach people how to treat us." Your neighbor sounds like a control freak who expects the world to revolve around them. I suggest putting them in their place so they know you're not going to put up with their bull****.

People like that don't realize that the problem is them, because they don't introspect. They're too busy judging the world around them instead. It sounds like your neighbor must have a very sad, lonely life to be so concerned with what the neighbors are doing and what they do with their blinds, etc.

If your dog's noise isn't bothering them, I think there is nothing to worry about on your end.