OK first - take a deep breath and relax. You didn't destroy your reputation.
Let's get that out of the way.
That being said, relationships are really important at work - they drive careers. I hear you that at the end of a long day - you don't really want to hang out with your boss and co-workers, but those off-site events can really help build team cohesion and improve your relationships. It is a short-term investment for long-term pay off.
It is clearly important to your boss - therefore it is important to you.
Should you take the 2 hours? No.
Should you go to the event? Probably.
If it were me I would figure out how to make other arrangements with your family, explaining the importance of this work event. Then tell your boss that you were able to make other arrangements, and are looking forward to the event - but you will still be working the full day.
Your boss sounds like a bit of a jerk - but that's just based on this one incident. If you have a good relationship already, look at this as an important step inn solidifying it further.
Suck it up and go to the event.
You are well within your rights to put in your 9-5 and go home - but you will probably find that limits your success.
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