Only if they are abused or tormented. The domesticated dog normally will have a territory and respects the boundary of a neighbor. They also would bite and retreat, not pull a little kid like that unless the dog was playing. We haven't heard the last of this story. This will go to court, I'm positive, and The dog whisperer will probably give expert testimony, lol.
Come to think of it, Taco Bell dogs are crazy on Mexican herb and aren't really thinking straight. There are some who say that they aren't really dogs. Here are the experts: