Has it really come to this? If you read the entire letter (shown in the video), the writer believes it is wrong of this family to have such a display because there are other people who can't afford to do the same.
If it were me, I'd double the display, and set up cameras to catch them when they tried to "take it down" for me. And turn the video over to law enforcement.
http://www.myfoxboston.com/dpp/news/local/letter-tells-family-to-take-down-ridiculous-ornate-and-tacky-decorations-20111221?fb_comment_id=fbc_5007639074976_1223914_5007640010976

What is the point of rules that are not enforced?