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It would bother the hell out me. I think videos are significantly more personal and intimate than photographs.
However, I have no advice as to how I would handle it ...And I think it sounds like it was all in good fun and the neighbor was being funny and playful--if he'd simply texted it to you and/or your husband I would find it humorous.
You have my sympathies as you figure out how to navigate this "look-at-me!-share-obsessed" world
My cousins are very clear about their kids being on Facebook, etc. They don't post photos or videos of their kids, and when someone else puts one up, they simply say in a well-meaning, non-confrontational way, "You know, we really try to keep our kids' pictures off the web. Since they are young, they really can't consent to having their private lives out for public consumption. In the future, they may feel conflicted about having what they consider private events or embarrassing pictures out there, so we would really appreciate it if you would take X down." In that way, (especially since Facebook is a company, and technically they can do what they want with your photos, and also have the ability to be hacked, etc.), they have a pretty reasonable stance about this and others readily comply with their wishes.
Since you are already putting pictures of your kids out there willingly, it might be a bit harder for you to make this argument, but perhaps you could modify it and just say you have very tight privacy settings, and try to closely monitor who is able to see photos and videos of your kids, and you know it seems silly, but you would sleep better at night if they would take the video down. They might not think it is a big deal to do so at all.
On the surface it doesn't appear to be anything to worry about. What do people call it - irrational fear?
But honestly, I can also say you could be worried and bothered also. How many times to we see a story of a creep on the news, with all of the neighbors saying "such a nice person". Maybe the media and the news and the world has changed many of us to look at everything with caution.
It probably won't be the last time somebody posts a photo or video of your child on social media. That is the world we live in now. If there was a real problem, like people making mean comments or making a photo into an insulting meme, I would step in. Something innocent and not causing embarrassment or posing some sort of danger, why bother. Your kid is going to be at birthday parties, sporting events, other people's homes, public places, school, etc...all places where people have camera phones. There simply is no way of getting around it anymore.
As long as he didn't tag her or give any revealing info, like her name, etc., I would not worry about it or say anything. I mean, how is that really different from when you walk outside with your child?
IDK... how old is the child? That, IMHO, makes a difference.
Why did you not stop him from making the video in the first place?
My child is in the 2nd grade. I was not around when he posted the video, I was at work, and my husband was working in the yard while my child and couple of other kids were playing by his house.
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...And I think it sounds like it was all in good fun and the neighbor was being funny and playful--if he'd simply texted it to you and/or your husband I would find it humorous. 
