My views on this are:
1. Yes, imposed noise can be very stressful. However, having had the warning, it’s now something you can control. I had 6 years of the opposite in my previous (terraced) house – I was working 80 hours a week and losing sleep to their noise pushed me to the brink more than once.
2. Inconsiderate people. Unfortunately, you live on a housing estate. It will be full of other people and different people coming to and from the party.
I live in a small village (25 houses) where we have an annual beer festival at the pub across the road. It’s not unusual for the Saturday night (of the four days it’s on) for there to be 750+ people there. And then they all want to go home at the same time. It’s once a year, so I can either avoid it (go away), join in (usually, to a point) or manage any concern by ensuring my driveway isn’t blocked and no-one’s chucking glasses in my garden.
3. Your kids. This is very much down to you. I have a 6 year old daughter who would happily (and has done plenty of times) stayed up to enjoy a party/wedding well after midnight. We let her sleep in the following morning. Get your kids used to a variety of experiences and don’t give them your neuroses.
4. Revenge. This won’t make you feel any better and will sour any relations in the future. Also, not everyone is a bedwetter morning person, so don’t want to hear your early bird DIY.