I never would give a neighbor a hard time about a camera pointing at a publicly visible spot on my property- just into windows and other semi-private locations. That includes both audio and video. I ascribe to the "it's legal for journalists to go through your trash, so if you want privacy, shred your trash first" philosophy.
I added a new camera that includes the school across the street and if the cops come by and ask for footage, I generally provide it (they asked for a breakin across the street, but my camera wasn't pointed there).
One important details is that I buy fairly generic cameras that aren't talking to the outside world/cloud services although it's still a risk.