I personally feel you did nothing wrong. The other child committed a criminal act by stealing donuts, so you had every right to beat that child. The family had it coming anyway because it's their fault that hooligan turned out the way he did.
Just wanted to mention, it was way out of line for those yuppies next door to report you for smoking in your room, that you paid for. I swear, some of the guests at disney are just so rude and judgemental.
Something similar actually happened to me:
I smoke on the rides, and on my last trip in May, this woman sitting in front of me on It's a Small World rudely told me to put out my cigarette because her 4yo son had asthma. I was astounded by her demanding behaivor, so I ignored her. About halfway through the ride, the kid in question rudely started to make raspy coughing noises which interrupted my ability to fully enjoy the ride. The woman screamed at me some more. I just couldn't believe such rude behaivor at the happiest place on earth.