Dzdiver,
I would have to say that you are in the right. As for taking additional action, I suggest writing to the cache approvers your concerns.
As for the cache owner, I think it was irresponsible to delete and dismiss references about the neighborhood. The cache owner is right that each cacher needs to assess the risks involved. But to deliberately remove information that may allow a cacher to make this decision prior to approaching the neighborhood, is just plain irresponsible.