have just read through this entire thread, and while I am always 
when someone comes on to a perfectly reasonable thread and starts saying things like "ah, but I have a phobia/allergy and as such wouldn't be able to be in the same room as....." because while there are always exceptions, on the whole ignorance and rudeness are born out of, well, ignorance and rudeness and nothing else, I do think that given the increasing types of different assistance dogs now, it can be impossible to know which dogs are crucial to the op's every day independence/confidence and which have a specific role iyswim.
I also think that given the amount of prejudice/ignorance that people with assistance dogs have to face out there in public, it is a natural reaction to consider one's home as the one place where the dog can go unchallenged at all times.
Restaurant and taxi refusals are on the increase, despite the laws on these matters. It is incredibly frustrating when going into a restaurant to be told "sorry, no dogs, I may have customers with allergies," when the law clearly protects the dog, and it will be lying on the floor anyway with no proximity to the customer with allergies (assuming there actually is one). I have been a guide dog owner now for eighteen years, and I've had more battles with restaurants in the past two years than ever before. And while nine times out of ten my reiterating the law combined with producing my assistance dog ID does mean that I get to eat there, people need to consider just how degrading and humiliating it is to have to fight for the right to go somewhere that everyone else takes for granted just because I happen to have a disability and wish to live a normal, independent life.
Now, guide dogs are not a crucial part of my independence when at home. They are guide dogs, trained to guide when outside of the home, when at home they are off lead, off harness and are to all intents and purposes pets. However, this is the one place where I make the rules as to where my dog does and doesn't go, and IMO consideration does work both ways to an extent.
When off lead my dog can be excitable, not because he's out of control but because he's happy, so he may run to the door or wag his tail furiously, and someone with a genuine dog phobia may find that disconcerting. If it was someone I know well then I would most likely confine our visit to the kitchen since the dog is not allowed in there. But I would encourage the phobic person to seek help to overcome their phobia, because they will encounter assistance dogs when out and about, in shops, restaurants, public places, even the school playground, and in those situations the owner has no obligation to keep the dog away just because someone has a phobia. In those instances it is the person with the phobia who would have to make the adjustment and not be in proximity to the dog. And phobias can be treated, disabilities cannot.
WRT the woman in the op though, given her attitude i would make no allowances for her what so ever. 
some years back I had a ring at the doorbell, I had my ILs staying who had two guide dogs in their own right. I had a guide dog and a retired guide dog, and they all ran to the door on mass. They were all under control, just standing around me when I opened the door, but I was amused when the woman standing on the other side began to talk.... "um... err... um ... we're ... err.... Jahova's witnesses." I think the presence of four dogs at the door when I opened it went some way to ensuring they never came back...