You know your neighbors. I don't. Your frustration may be very justified, but some things to think about...
How many are in their household? More people equals more showers, laundry drinking water.
Do they work from home? All those trips to the loo are done at home and not an office somewhere else.
Do they eat out or cook at home? Pots of pasta, washing veggies, food prep takes water. Takeout food, not so much.
Do they entertain, have family visit often? Again, more laundry, food prep, etc.
Try telling someone who works in a hot kitchen or attics or rooftops that a shower every other day is enough.
Using water isn't necessarily wasting it.
The tracker app only asks a few questions but then says "Similar homes within 2.0 miles." Without going door to door any conclusions are questionable at best.