Thanks for the vote of confidence. I know a bit, since prosecuting criminals is what I do for work. I deal with far more drug and gun cases, but I have dealt with enough of these to give reasonable answers to some questions.
With respect to your neighbor specifically, all I can glean from the risk of injury charge is that he had contact with the intimate parts of someone under 16. Intimate parts could be buttocks, or thigh, or breast, or genitals, so it covers alot of possibilities.
As to why he is allowed to still live with his children, not enough info to really answer. It would seem logical to assume they were not the victims. Maybe they are all under 8 years old and he decided to play grab-a$$ with the 15 year old baby-sitter who looks 25. That type of incident is distinguishable from someone who is a pedophile (person with sexual interest in pre-pubescent children). There may be conditions like no unsupervised contact with minors under 16. This would mean he couldn't be home alone with his kids. Sex offender probations are very strict. Frequent searches of home/computer by probation, polygraphs, gps monitoring bracelets etc can be the norm
These cases are hands on (no pun intended). Victim's advocates, DCF, psychological evaluations for the accused, victim's willingness to testify are all factors that go into the dispositions of these cases. This is why most judges and prosecutors you could talk to are somewhat opossed to the 25 year minimum mandatory sentencing schemes being proposed. 2 reasons why I would be opossed to that 1. punishment should fit the crime ( however bad, a passing grope is different than grooming a victim over time and repeatedly sodomizing them) 2. It ties the hands of the people who actually need to deal with these cases. Sometimes as a case progresses it is obvious that a victim will be a terrible witness and the case could be lost at trial. The ability to negotiate a plea serves the interst of justice because it allows the system to keep hooks on the accused. An aquital at trial, they walk away unscathed.
Sorry I couldn't more completely answwer you question, not enough info