yes you have it right. this has been done in the past, and can still be done.
legally, you dont want to do it. i have had experiences with seeing my SSID coming from a router that is not mine, and the nieghbor basically said effoff ill do what i want. in that case i did what i want as well.
What’s the problem with your neighbor using "your" SSID?
It’s not like anybody can "own" an SSID name, and if you’re using WPA, the only effect would be a few milliseconds longer of initial connection time per device.
Actively running a DoS against your neighbor might or might not be legal, but it sure is petty (and given the above, unnecessary).
legally, you dont want to do it. i have had experiences with seeing my SSID coming from a router that is not mine, and the nieghbor basically said effoff ill do what i want. in that case i did what i want as well.