They should wait to see if it is rabid. Hopefully it is not although I understand rabies vaccine is easier to handle theses days.
The dog was current on its shots, and it was observed for 24 hours IIRC.
As you mentioned, this dog had attacked once before. If the first person to be attacked had brought suit against the owner, do you think you would have been bitten or would the animal have been better restrained if not already put down?
Unfortunately, its usually insurance that picks up the tab. This just pushes premiums up for the rest of us. Now, if it had gotten something more vital like a hand or caused visible disfigurement, I'd probably have a piece of thier arse, so to speak.