noisy neighbors

I need someone's opinion...
So I live in a two story home in a community, where all the houses are super close together and the garages face each other down an ally way. The two neighbors across from me have like four kids in each house and they always like to play in the ally way outside the garages. 
Well sometimes the kids are out until 3am playing, and the parents literally just sit outside their garages and drink all night. They don't send their kids to bed or control the volume of them playing. They literally scream and yell, bounce basket balls and throw them at my garage door causing a loud vibration through my entire house. They run back and forth and talk on this megaphone toy they have too, and they play music too. Pretty much any loud thing you can think of. These kids are like ages 3 to 11. Barely any parental supervision exists, unless they have a beer in their hand. 
And did I mention my bedroom window is directly over the ally way?! Not cool.
Now this happened last night and I got literally two hours of sleep. I'm a light sleeper too, so it makes matters worse. I've tried to sleep in the guest room but it's also above the ally way, and I've tried to sleep on the couch, but the living room is right by the sliding door that goes to the side of the house right along the ally way. So there is no escape from the noise. I've even gone outside to tell them to be quiet or go inside. But they're children and don't listen.
My husband seemed to think I didn't have a right to be so upset about not being able to sleep. But I disagree. Personally, I think it's disrespectful to your neighbors and irresponsible to have your tiny children out until 3am with no supervision, while you decide to get drunk. 
Do you agree or disagree? Have you had neighbors like this? What the heck am I supposed to say to the parents of these kids? I don't want to be rude or sound like I'm telling them what to do with their kids. And I don't want problems with my neighbors. But I can't go on losing sleep because of all this.