Discharging a weapon in a populated area is unsafe in nearly every circumstance.
Except in this case he managed to check off a number of 'safe' boxes. The described fence would stop the ammunition of choice from the weapon, and the ammunition fired at a relatively high angle would come down safely as well.
That being said, I don't want regular gunfire just because of the noise.
I would have told the drone owners that they can take their broken drone or they can press charges for destruction of property in exchange for the homeowner pressing trespassing/peeping charges on them.