Yep, because of his temper and lack of responsibility.

It doesn't change the facts of the situation as you have laid them out. Letting dogs out without a leash and you getting between your dog and their dogs could have ended really badly for you. You just became the barrier that gets bit.

Him grabbing a blunt object and threatening you with it is grounds for self defense, particularly the closer he gets. If he was hurling insults from the porch and being an asshole but not being threatening, you can't walk up and pepper spray him. That's not the situation you laid out above.

So you can choose to not go that option, but understand what you did is not recommended. If your neighbor is a shitbird and it sounds like he is, treat him like one. If he did something that was a genuine threat against you, make him not do it again.