Call animal control. The parents of those children need to be told what happened, and NOT by a five or eight year old.
I think you did right. You protected your dog and backed the other dog off. Not much else you can do, save carry a spray bottle of something, lemon juice, citronella.
I think that was a pretty extreme situation, but if no one does anything you might see the same kids with the dog again.
Bear Cub, Hepsi-Pepsi
Cujo2, Karma Chameleon
Ramona the Pest, Kojak -- who loves you baby?
Tiny Tinnie, Susie's Uzzi, Kaiah -- The Baby Monster.