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This doesn’t sound unreasonable at all. Your neighbor bought a new home and wanted to know where the property line lies. (Nothing unreasonable there.) Leaving the surveyors flags in place is standard practice and in some places is the law, and absolutely reasonable considering the expense of surveying. When his new neighbor was unwilling or unable to do the respect of leaving the flags in place, he replaced them with something more substantial (and less likely to be “accidently” knocked down). And then when his jerk neighbor (you) vandalized his property, he quite reasonably installed a modest fence. They say good fences make good neighbors, but for some people (you and your family) nothing is EVER their fault.
I feel bad for your neighbors. I personally would be pretty pissed off if my neighbors’ kids were using my property as their personal playyard, destroyed surveyors marks, and ran their mowers over my open space.