Earlier quoted context omitted.
Are you saying if the neighbours use an encrypted connection it makes it impossible to just look at packets and see for which host they are or where they are coming from - i.e. the XKCD example as given doesn't work then anymore?
If they use WPA/WPA2 the WiFi signal is encrypted so can't see anything without the key. You can make assumptions about the traffic volume and the involved machines but the data is insivisible. If you are able to get the key or they use no encryption or WEP you can look at the packets and get metadata for SSL sessions and all unencrypted traffic.
And that includes source/destination IP? Didn't know that..