Decision Needed

We had new neighbors move in a few months ago. They have two very large dogs (pit and German Shepard). They leave them out in a very small fenced area next to our yard (about 4x8 is my guess). They bark ALL OF THE TIME.

At first, I figured it was them getting used to the new place. Annie barks at passers by too so I didn't think much of it. They look like they could come over the fence at any second since they are so large and crazy. Ryan thinks they are good guard dogs and discourage thieves. I am ok with this thinking to an extent.

Now, after a week of those damn dogs barking for what seems like hours in the middle of the night and waking me up; I have had it. I want to approach them and ask them what the situation is. I want to say I understand barking but when it gets my dog riled up and she starts barking at 2 or 3 am and then wakes up my kids, that's the end of the line. She needs to keep them inside.

Of course, Ryan thinks this is going to cause massive drama and is afraid they will retaliate on us. I want to make it very clear, I am not reporting them to the city at this point.

One other thing I should mention. They had the German tied up on a short rope the other day for a couple hours. He whined the whole time. They tip their dishes of water over and honestly, it's 90+ degrees out. I find this cruel. I did make a promise that if I see that dog tethered again, it's straight to animal control.

So, do you think I let it be and continue to be a crab being woken up in the middle of the night or say something?