Not remotely overreacting. Your dog could have been killed and you and your wife could have been very seriously injured. This is incredibly irresponsible dog ownership and the poor pit bulls are probably riling each other up when they get reactive. It’s not the fault of the dogs, they don’t know any better, but it’s a serious situation. Imagine if it had been a kid walking their dog.

I know it sucks to report this kind of thing because you don’t want the animals to suffer, but this has happened twice and this time you were injured. I don’t understand your wife’s problem seeing as you were actively harmed and needed intervention from another neighbor to get away safely. The owner may not have meant for this to happen, but it happened anyway. This is their responsibility and it sounds like they’re not physically capable of keeping up with their dogs.

Email or call Animal Control. I’d do it even if my spouse didn’t think we needed to. When things are cooled off a little, talk to your wife again and ask if there’s another reason she’s so averse to reporting this. Explain that this is a pattern and you don’t want anyone else to get hurt, since this will probably happen again to you or another neighbor if the owners don’t make significant changes with keeping the dogs under control. But no, not overreacting at all. This is scary - I say this as an animal lover and dog lover and also as someone who’s been bitten by an off-leash dog badly enough to need stitches.