You're not overreacting. That dog is not safe around those children. Those are not responsible dog owners. They don't know exactly why the dog attacked you, but they should. They allowed the dog to continue to be around small children after that attack. They shouldn't have.
Rottweilers are the dogs most commonly involved in fatal dog attacks. People think Rottweilers are number two, and pitbulls are number one. But that's because people don't know what a pitbull looks like.🤷🏿♂️