The Philippines is generally an OK place to visit.
But it can seem like the wild west at times.

No offence intended here but there are quite a few places that I'd personally avoid in Mindanao and Iligan City is one of them.

I agree that it was a scary event. I'm not sure what I'd have done given the same circumstances and with a small child involved too.

I might have tried to have a security guard with me to approach the man and ask him some questions.

In principle, on every issue of safety and security only one person can decide what you should do – you.

Anyway glad you all safe and secure now.
Does seem a very unusual happening.